Americans Are Taking Out Mortgages to Buy Bitcoin

[mybtcasset]

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?.

[Don Pedro Dinero]

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?.

Next time quote your source: https://www.cnbc.com/2017/12/11/people-are-taking-out-mortgages-to-buy-bitcoin-says-joseph-borg.html
Otherwise you can end up in trouble.

I think you must be a complete idiot to do that. You may have luck and end up profiting a lot, but it is too risky as market can fall down at any point and stay there for long.

[Karakyli]

I would not advise anyone to take a loan from a bank on the security of their property and buy at the expense of this loan bitcoyne. This is very risky. The behavior of bitcoins is difficult to predict and therefore one can get into a difficult financial situation in the event that bitcoins cease to grow in price for a long time. Americans in this case, of course, can profit from this, but this is rather risky.

[Lyancy001]

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?.

That is just insane way to do. If you really want to invest, just put the things that you are not willing to cry on if you lose.

[nc50lc]

After those news in the internet lately, more will likely to follow.
These guys should stop their business increasing the hype, instead they should provide a warning and general idea of "smart investments" while providing the best assets of bitcoin/digital currencies. At least a link to the forum is good enough. People doesn't have the same point of views, knowledge and intelligence, most of the unwary will be the victims of these "news".
Coins/Coinbase did a good job sending emails to their users since they are the most "hype-susceptible".

You think just Americans? Some people here in PH are "investing" by selling their items in order to hoard a lot of BTC.

[isvodkabeer]

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.

[illinest]

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.

Let's not go overboard--homeless? If we're talking about mortgages, credit cards and equity loans, we're mostly talking about middle class and upper class folks with good incomes and property. They're not going to be homeless if the market takes a dive.

I saw that statement earlier and I was curious, what's his source for this? Is it just a guess based on an uptick in home equity lines of credit and second mortgages? I can't imagine people are telling their bankers that they are using the proceeds to buy bitcoins!

Do you think people should be taking out credit to buy bitcoin?.

As a matter of principle, no, it's generally a bad idea to take out credit to invest in anything. That said, there's something wonderful about the idea of people racking up credit with the banks (with worthless fiat) to buy precious bitcoins. Poetic justice, if bitcoin does what I think it's going to do...

[bug.lady]

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?.

And not only taking mortgages, there are also people who quit their jobs over the illusion they can make more money investing.

I am far away from strong statements that you cannot do that, but at least you must know what you do, invest the money you can afford to lose and clearly it is NOT the case if you put your house on stake...

[Guvn0r]

IMO They should ve done it about 6-8 months before this big rally towards 17k. I am seeing even 20k possibility before 2017 ends.

Always too risky to pledge your home and invest in something as volatile as BTC, but then who is to say?

[salihno71]

Smart people say: do not invest in crypto what you're not prepared to lose. In this case you can lose a lot and if things go in the upredicted ways, you can remain homeless and on the street. So i would say, no - this is not something you should do. You can however invest smaller amount and you will still benefit from the potential growth while still retaining relative safety.

[coinmagnet1]

This is a very very bad idea. But, can you really blame them? It looks like a gold mine, ayeeeee.

[hadveach]

Smart people say: do not invest in crypto what you're not prepared to lose. In this case you can lose a lot and if things go in the upredicted ways, you can remain homeless and on the street. So i would say, no - this is not something you should do. You can however invest smaller amount and you will still benefit from the potential growth while still retaining relative safety.

yes, I agree with you. if in doubt and fear of losing precious possessions, you should invest only a few bitcoins, and that will not make it poor.

[razzbee]

Well, its too risky now, but seems tempting too .. thats bitcoin for you

[jseverson]

There doesn't seem to be any numbers cited. They do say they're not isolated cases anymore, but I'm willing to bet people who actually do these kinds of stuff are very few in number. Fact of the matter is, investing in cryptocurrencies is still high risk, and you would need to have a few pieces in your head loose if you want to risk getting jailed just to hit it big.

Still, to each his own I guess. I wouldn't even consider taking out credit to buy dips, but that's just who I am as an investor. Risk big win big, as they say.

[Springfield Scooter]

You cant live in a bitcoin!

[soham]

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.  

[strugmo]

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."

[InnMind.com]

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.

[fishbonez11]

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.

[salihno71]

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.

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.