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U.S. property investors are crazy about mortgaging their property to buy bitcoin

Joseph Borg, a securities regulator, said people are buying bitcoin over property mortgages . Getting bitcoins with credit cards and loans is likely to result in these risky investors being heavily indebted and even homeless.

Beat bitcoin

Most people have heard that a buddy at Reddit earlier this year mortgaged property rights to buy bitcoin. At that time, the transaction price of bitcoin was 3,000 U.S. dollars and now it has paid off. But if Borg is right, this is by no means the case. The higher the bitcoin price, the greater the risk to those who mortgage the property.

The experienced securities regulator said:

We've seen a lot of examples of mortgage-backed property buying Bitcoin ... either by credit card or by mortgage. The average person who does this earns less than $ 100,000 a year, they have a loan to repay, and two children go to college, who need it more.
As president of North American Securities Institute and head of the Alabama Securities Commission, Borg is fully qualified to make recommendations. Even the most fanatical bitcoin supporters know that a home should not bet everything on bitcoin.

Credit for bitcoin

Property mortgages are not the only way people can get money to buy bitcoin: websites such as Coinbase can accept credit card payments. As long as bitcoin prices have been rising, those who have bought bitcoin can pay their monthly credit card with the proceeds. However, investors are likely to be in debt and default on loans once the currency moves sharply.

Borg said:

We are in a period of feverish curve, the future is likely to gradually flatten.
This year, Bitcoin was highly resilient and managed to get out of the negative news of the shutdown of China Cryptocurrency Exchange. However, it is not impossible for the bitcoin price to drop if there is a global event such as the U.S. regulatory act or the introduction of the Bitcoin regulatory act in South Korea.

People who have just been in Bitcoin have not yet experienced a bear market yet. Although the volatility of bitcoin is declining compared to its birth, the price of the cryptocurrency remains volatile and is likely to be out of control. Those who have mortgaged their property and have benefited from bitcoin price increases may think their decision is correct, but not everyone can be a winner.
At the beginning of bitcoin, many early users regarded this P2P currency as a "bank killer." It would be ironic if the credit-starvation caused by bitcoin caused the digital currency to grow in value and the subsequent decline would have a negative impact on the bank.