But you are missing the point too, the one who is taking a loan will be hoping to make profits from the capital and pay back the loan so there is no plan B if bitcoin crashed which is what I am raising what it is. An average middle-class joe spends his entire life savings to pay the mortgage for the house he wanted to have and if the plan fails then this is another trap that may end the dream of getting finanical freedom which is why I said it is no different and we need to follow the process save=>invest=>ROI=>loop so even if the growth looks small that comes with no risk and you don't realise the power of compouding which makes it much bigger in the longer run.
But not everyone is like that! I think the least informed people approach taking loans like that. If you take a loan to buy Bitcoin and which you plan to pay back with Bitcoin that is an extreme risk. That is not the correct way to do it. You take out a loan which you invest in whatever but you plan to pay it back with your regular salary. If you get lucky with your investment then paying back the loan becomes easier. If not then it just returns to the originally planned way. I gave an example in my post how some people that I know did it.
Yeah, they don't sound like they have experience. I even have some friends who took loans and went into failed shitcoin investments. What about it? They are just paying back the loan as regularly as they planned and hopefully they learned their lesson about shitcoins.

As long as you approach the loan the correct way nothing catastrophic will happen.