According to the reputable securities regulating official, Joseph Borg, American consumers are resorting to increasingly drastic measures to get their hands on bitcoin. A growing trend among American consumers is to take out a mortgage, use their credit card, or take out an equity loan in order to pay for a profitable bitcoin investment. This is a practice which could leave thousands of Americans severely in debt and perhaps, even homeless.
Earlier this year, a Reddit user claimed to have taken out an equity loan on his home in order to buy bitcoin. At the time, bitcoin was trading at a mere $3,000, meaning that the Reddit user has scored big on his risky move. However, Borg notes that similar events are becoming increasingly popular among Americans who are chasing the latest digital gold rush, despite the obvious risks.
In an interview with CNBC earlier this week, Borg confirmed that an increasing amount of American consumers are using creative credit approaches to enter the bitcoin industry. Something which will likely prove to be unwise for the average American family.
Borg currently serves as both the director of the Alabama Securities Commission as well as being the president of the North American Securities Administrators Association. With his impressive credentials, Borg seems skeptical of the growing credit trend among Americans. Even crypto enthusiasts wouldn't advise getting into debt just to invest in bitcoin.
More recently, Americans have been using their credit cards on trading exchanges. Ever since the popular platform, Coinbase, started accepting credit cards, other exchanges soon followed. This proved a great, albeit risky, way for eager users eager to participate, even if they were unable to scrape together enough cash. Currently, users are at no serious risk of a price correction, however, any security remains subject to volatility. Bitcoin is already known for its volatility, something which could damage investors who created debt just to partake in the market.
During his interview, Borg cautioned that the current mania is bound to die down eventually, which could leave hundreds of users devastated. However, so far it's difficult not to be positive when it comes to bitcoin. The price has skyrocketed throughout the entire year, despite China's bitcoin ban. However, it is possible that a few more governmental crackdowns could perhaps start to affect the price.
While bitcoin’s volatility has improved greatly in recent years, the market remains subject to either upwards or downward trajectories, despite its new-found relative stability.
Earlier this year, a Reddit user claimed to have taken out an equity loan on his home in order to buy bitcoin. At the time, bitcoin was trading at a mere $3,000, meaning that the Reddit user has scored big on his risky move. However, Borg notes that similar events are becoming increasingly popular among Americans who are chasing the latest digital gold rush, despite the obvious risks.
In an interview with CNBC earlier this week, Borg confirmed that an increasing amount of American consumers are using creative credit approaches to enter the bitcoin industry. Something which will likely prove to be unwise for the average American family.
Borg currently serves as both the director of the Alabama Securities Commission as well as being the president of the North American Securities Administrators Association. With his impressive credentials, Borg seems skeptical of the growing credit trend among Americans. Even crypto enthusiasts wouldn't advise getting into debt just to invest in bitcoin.
More recently, Americans have been using their credit cards on trading exchanges. Ever since the popular platform, Coinbase, started accepting credit cards, other exchanges soon followed. This proved a great, albeit risky, way for eager users eager to participate, even if they were unable to scrape together enough cash. Currently, users are at no serious risk of a price correction, however, any security remains subject to volatility. Bitcoin is already known for its volatility, something which could damage investors who created debt just to partake in the market.
During his interview, Borg cautioned that the current mania is bound to die down eventually, which could leave hundreds of users devastated. However, so far it's difficult not to be positive when it comes to bitcoin. The price has skyrocketed throughout the entire year, despite China's bitcoin ban. However, it is possible that a few more governmental crackdowns could perhaps start to affect the price.
While bitcoin’s volatility has improved greatly in recent years, the market remains subject to either upwards or downward trajectories, despite its new-found relative stability.