|
December 15, 2017, 11:15:19 AM |
|
Bitcoin was born following the great recession of 2007.
The nationwide banking emergency, known as the subprime mortgage crisis can be blamed on everyone from financial institutions, to credit agencies, to consumers. What essentially happened is millions of people were buying houses that they couldn't afford on credit. Home prices began to fall dramatically from the 2006 highs, and mortgage backed securities lost most of their value.
This brings me to the topic of this thread: Credit Crisis & Bitcoin.
I am very concerned that bitcoin can be bought using credit cards. Much like what happened during the subprime mortgage crisis, millions of people who can't afford to invest are buying bitcoin. If crypto were to drop in value like housing prices did, we could have another giant credit crisis as people are left with depreciating digital currency and increasing debt.
Should exchanges accept purchases made by credit cards? Will this credit crisis be the worst one of all time?
|