I’ve come across these news: https://steemit.com/bitcoin/@worlinfo/the-uk-is-experiencing-a-wave-of-mortgage-debt-to-invest-in-the-bitcoin
According to the article, people who do such a thing are wealthy people, entrepreneur-like. However, is this get spread, I won’t be surprised if middle class people start doing it, as it happened with the financial bubble: middle class people were getting mortgage after mortgage because everyone knew someone who had made a good profit by selling houses in the short term. Many of them got caught when the bubble exploded.
Something similar may happen. Even if bitcoin goes up in the long term, we can have a period like 2010-13 in the future, where at the end of 2009 btc reached an ATH, then went down and it took three years to recover. So people getting into debt and expecting to make short-term profits might face deep trouble.
According to the article, people who do such a thing are wealthy people, entrepreneur-like. However, is this get spread, I won’t be surprised if middle class people start doing it, as it happened with the financial bubble: middle class people were getting mortgage after mortgage because everyone knew someone who had made a good profit by selling houses in the short term. Many of them got caught when the bubble exploded.
Something similar may happen. Even if bitcoin goes up in the long term, we can have a period like 2010-13 in the future, where at the end of 2009 btc reached an ATH, then went down and it took three years to recover. So people getting into debt and expecting to make short-term profits might face deep trouble.
If this is true,then people are making wrong financial decisions.
They should use their savings to invest in cryptocurrencies,not mortgage debts.
This financial strategy is too risky and they might lose lots of money.
What if the UK central bank acts like China central bank and bans all the cryptocurrencies?
