Will bad thing happen if I try to use this as a contact wheel (pic) on a DIY grinder?

Will a bad thing happen...maybe.

I don't have experience with this particular wheel, but I do have experience with quite a few 10" "made in China" casters with solid wheels, and apart from the hazards already mentioned about being out of balance or having non-concentric bearing pockets, or crap bearings...(none of which are a problem for the low speed use this wheel is intended for BTW) I have seen hubs separate, and also tires flex off the side of the caster wheel. Either failure would be bad at high rotational speed.

Best case scenario...you would put in a lot of time trying to make this wheel run true, track belts properly, not vibrate...and either have to trash the wheel because you can't get it running true or put in so much time you could have bought a decent contact wheel twice with what your time is worth. Worst case, well...
 
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