It's been a while since anyone talked about crypto being a "hedge" against fiat currencies - maybe the slow markets in the last few years led to most people consider that theory largely debunked; if not, irrelevant at this point.
But crypto time moves very fast, while fiat time moves very slow. I think that a lot of the "hedge" people (something that was popular during the 16-17' hype cycle) underestimated how long the "collapse" would take - and to what extent the status quo would try to hold onto its power - even at the expense of its own people. The upwards extraction of money and resources from the needy to the needless has been...quite intense, to say the least.
Now, amidst all of this societal self-destruction is a "bad idea" that taken hold - borrowing cash to buy crypto. Common wisdom says that you should never invest what you cannot afford to lose, you should never try to time the market, never take on debt whenever you can help it. Nonetheless, common wisdom only applies during common times - uncommon times may require uncommon wisdom. Are we there yet? If not, is that where we are headed right now?
If one truly believes that fiat currencies are compromised and is headed towards hyperinflation, there is a certain logic to it that makes sense - if the currency is going to be worthless in the future, it would be highly profitable to borrow a lot of cash prior to the spiral, and convert into alternative assets like gold, essentials, and now, crypto. By the time it becomes time to pay back the loan, the currency would have degenerated itself, essentially making it free.
If you truely believed that leveraging debt to buy alternative assets like crypto was a good strategy, the best time to do it was 5-10 years ago, back when the interest rate was essentially at 0%. I do believe that there are at least a few people out there who have made this part of their financial strategy. This includes crypto true-believers, technologists, degen gamblers, as well as many in Wall Street itself.
In previous crypto cycles, the lines between believers in crypto vs fiat tended to be very clear - these days, not so much. But this strategy has potentially incentivized a number of people in the fiat worlds to accelerate the demise of the dollar itself. Bad for society? Bad for the country? Most likely, yes. But there is a logic to the profitability of self-destruction, if you can see where the incentives behind people would who borrow money against themselves, in order to make their "escape".
For the record, I don't think that anyone is really doing this intentionally in a conspiratorial way; it's the natural outcome of incentives that most people fall into, given the conditions and incentives available. Going against such a thing requires strong values and strong leadership - neither of which happens to be available right now.
But going back to the original question - is it a good idea to take on a loan to buy more crypto? If you asked me 10 years ago, I would've said hell no - 5 years ago, still a no. Today? The needle has moved over into the "maybe" pile at this point.