And so they close it. You move on. I am not suggesting you do this if you have to go above 10% LTV. Ideally less than 2.5% with 10% max.

I do NOT believe this is a valid strategy for people with less than 10 BTC. In 5 years it likely will be available to those with 2-5...

You can also spread the risk across lenders, but I gotta be honest I don't see your scenario playing out. I see a wide open field and companies competing for business. I see an entire new industry springing up to unlock capital locked in Bitcoin. I think we have blue skies for several years to come. IMO of course...and without doubt it introduces counter party risk. Life comes with risk...