Americans Are Taking Out Mortgages to Buy Bitcoin

markleal

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Quote from: mybtcasset on December 11, 2017, 11:51:40 PM

People are taking out mortgages to buy bitcoin, says securities regulator Joseph Borg. Coupled with accounts of credit cards and equity loans being used to obtain bitcoin, it raises the possibility of risk-taking investors being left deeply indebted or potentially even homeless..

But if Joseph Borg is correct, such cases are no longer isolated, and the higher bitcoin climbs, the greater the risk credit-takers face. Mortgages and equity aren’t the only means by which people have been scrambling to free up funds for bitcoin: major sites such as Coinbase accept credit card payments..

So long as bitcoin keeps rising, buyers can pay off their monthly credit card debt with their profits. Bitcoin has proven extremely resilient this year, shaking off negative news such as a Chinese cryptocurrency exchange crackdown without much fuss..

It would be ironic if the digital currency’s rise – and subsequent fall – was to take a bite out of the banks due to a credit craze fueled by bitcoin. Do you think people should be taking out credit to buy bitcoin?.

Hi there mybtcasset! In my own opinion, one who have a high trust in bitcoin would do anything just to ride in the technology. With the historical data, friend and relatives opinion and experience. The could be more and more people who will jump in and spend a lot of money in bitcoin and wishing for a return of investment within a quarter. However, it is a risk that they are takin into, we all know that not most of the time the price is going upwards, there are times that the price stay low, just like several weeks ago until now. Thus if the bank is asking you for payment and the investment is not making money, it could lead to much larger debt. Wink

duyduc256

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I advise people not to invest in mortgages because it is risky. For me should invest based on the money we earn because it will make us feel safer than borrowing and I don't like your idea as it can make many people lose all

Nilda

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Gutsy move! High risk, high returns. These guys would be laughing all the way to the bank if they’re right or would be living in the streets if wrong. The odds are in their favor though. Good luck!

pooya87

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i am sure some people had taken out mortgages and lots of other debt to buy bitcoin, but the title of the article and the article itself is making it so much bigger than it really is.
of course there are always some investors who are taking bigger risks that are idiotic to a normal person and they pay for it sometimes too, but those people are the minority. the majority won't do something reckless like this.

and if things were half like what the article depicts them, then bitcoin price would have been $500,000 already. and that is because how small bitcoin market still is.

linkHA

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Loan to buy bitcoin, it is still too impulsive, if the price rises, then you will be very happy, but if the price falls, then you can not sleep. Angry

tiger2monkey

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In my opinion, it is not a good idea to do so. Even though bitcoin has high potential and possible reward, as a new technology and asset, bitcoin carries high risk.

kc999991

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Giving up your shelter for a gamble is probably not wise at any stage. You should at least have the minimum standard to your own life first before investing into crypto currencies. At the end of the day these kind of things can suddenly vanish overnight and leave you with nothing.

cobbozo

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The ways people get money to invest on bitcoin will solely depend on them, but for me, it wouldn’t be a good idea to sacrifice certain important things or taking a risk that is to huge.

dawoodkhan97

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LibertyLance - Where Freelancing Meets Blockchain

FOMO is what makes people take extreme measures.
One should not just 'invest' but rather do it smartly
with calculated risk.

OriginTrain

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Of course this isn't a good idea. BTC does have a high chance of going up to 100k++, however there is also a high risk. We have all witnessed the coinmarketcap charts falling just from a little FUD from time to time, a single major black swan event could lead to red returns.

jtipt

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Quote from: InnMind.com on December 12, 2017, 04:51:13 AM

It may seem very tempting but also extremely risky. The world has seen many crises when people did stupid things trying to earn easy money and lost everything they had.

Exactly. These people saw the huge increase in BTC's price in this year and are thinking they missed out on a major money making opportunity, but what they are doing is way to risky, yes bitcoin may tend to rise but there is always that possibility we will be back to $10k in no time if people stop investing. Really a stupid move by these people IMO.

clip123

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Quote from: isvodkabeer on December 12, 2017, 02:53:29 AM

I wouldn't do that now.

But if someone did that this summer, they would have made a ton of money by now, possibly enough to retire.

It's always risk vs. reward.

True but please invest wisely and only put put in what you can afford to lose. as if that money was never there.

rube08

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Not smart at all if the investor mortgages a property just to obtain a highly violity coin based on speculation. The golden rule of investing is only invest what you can afford to lose. It is always the assumption that when you invest and lose, you can recover and not dwell on the loss.

Erelas

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I shudder about going into more debt than is absolutely necessary at anytime. That said, "if" I'd done something like Borg mentions earlier, I'd be paying a significant amount in capital gains, and I would gripe about it, but still be happy overall.

Being a family man, and retired, I'm very leary of what I invest in, others depend on me and I take few risks. That said, it may work out for some, and I'm happy for them if it does, it would benefit all of us, but, burning credit to do it, no, not for me.

salihno71

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This is NOT a good idea. It seems that they have missed the fact that the crypto investments are very risky and can go south at any point in time. And the consequences of losing all of your money are very severe and you can remain homeless. Unfortunately greed is usually blind.

Quote from: strugmo on December 12, 2017, 04:42:32 AM

Next month the story will be, "Irate Americans who took out mortgages to buy Bitcoin can't figure out who to sue for their losses."

Lol this ^. They can probably sue themselves for beeing stupid.

fishbonez11

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What amuses me here is people's creativity in how they would get hand of more money. I think it's pretty creative and resourceful to do that, but I say that the risks are real and daunting sometimes. For me, it's okay to do as long as you have a buffer in your budget or savings to pay off your mortgage and not solely depend on the increases bitcoin market might bring.

InnMind.com

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It may seem very tempting but also extremely risky. The world has seen many crises when people did stupid things trying to earn easy money and lost everything they had.

strugmo

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It's really too late to do this, even if you think it's a good idea. If you did it last year, you would have been in great shape. But the intrinsic value of a Bitcoin is around $1500, and the price is, well, whatever the very volatile price is at this millisecond. You can argue about whether it's actually a bubble or not, but with so much real estate between the price and the intrinsic value, the entire idea of borrowing to gamble seems like an incredibly risky strategy.

Next month the story will be, "Irate Americans who took out mortgages to buy Bitcoin can't figure out who to sue for their losses."

soham

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Taking mortgage and buying bitcoin with that money is a serious matter and one should not gamble with that. Bitcoin market is pretty dynamic and fluctuates from one point to another in no time. So the person may end up loosing the house if bad time comes. I know some people gambled using their credit card. They bought bitcoin using the available balance few months back and now after the recent price surge at $17000, they paid off the credit card debt and enjoying on the rest of the bitcoins they are holding. But credit card debt is still somewhat manageable. House mortgage is somewhat insane. But Americans are known for crazy things so I hope everything goes well.

I personally follow systematic investment plan to invest in cryptos. I put a certain amount of money in to crytos at a certain interval so that I can average out my buying price and make the maximum profit. This method made my portfolio look great.

Springfield Scooter

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You cant live in a bitcoin!

Topic: Americans Are Taking Out Mortgages to Buy Bitcoin (Read 385 times)