I don't see him being capable of paying off the loan within the stipulated timeframe given by the bank in the event of his plans going south. Here's why I think so. If there was a way he can use to make up for the loan in the time given he wouldn't have need for the loan in the first place but would have used that means in securing the money to use in buying bitcoin than going for where he would incur some interest.
You’re jumping to conclusions too quickly - that’s not right.
I guess you underestimate the how bank evaluate loan applications.. Take not that they aren't a charity, so they won’t release a loan unless they’re confident you’re capable of repaying it. So if it’s a collateral loan, the bank has security, and they’re more likely to approve it, but , if there’s no collateral, they’ll dig deeper into the borrower’s financial situation. If OP doesn’t have a steady job or a business generating income, the bank will likely reject the application.
So you can't say he can't pay.