Average Americans Putting Themselves into Debt for Bitcoin
It’s not just seasoned investors hoping to cash in on Bitcoin. Your regular girl, or boy, next door also wants to be a part of this digital currency’s lucrative rise to the top.
There’s no denying that Bitcoin fever is gripping the world. Even though it has grown over 1000% in 2017, the most dramatic price surges have happened over the last few weeks, starting with reaching that magical five-figure status.
However, Bitcoin’s price is not the only thing that’s increasing. So is interest from well-established financial institutions. The Bitcoin futures train has officially left the station, with CBOE having launched their contracts on the 10th of December. Both CME and Nasdaq will be following suit soon enough, with the former starting trade on the 18th of December.
Sunday’s foray into mainstream trading was most likely responsible for the currency trading at over $17K. These big numbers would make anyone want to be a part of the Bitcoin mania, with some people putting themselves into even more debt to do just that.
Home Is Where the Bitcoin Is
We’ve seen mortgages being taken out to buy Bitcoin. People do credit cards, equity lines.
Borg went on to add:
This is not something a guy who’s making $100,000 a year, who’s got a mortgage and two kids in college ought to be invested in.
Mainstream Interest Is Increasing
Even though Bitcoin has been called a “fraud” and a “novelty” by crypto cynics, the average person can see the potential that this cryptocurrency has to offer and are willing to take big risks for a slice of that Bitcoin pie.
With the continued upward price trend, Bitcoin holders have been seeing a definite return on bitcoins that they have purchased at a lower price a few years ago, which is most likely what these new and inexperienced investors are hoping for.
However, Borg warns that a price correction will eventually happen but that this won’t be the end of crypto, saying:
You’re on this mania curve. At some point in time, there’s got to be a leveling off. Cryptocurrency is here to stay. Blockchain is here to stay. Whether it is Bitcoin or not, I don’t know.
Pay Now, Gain Later?
As with any investment, thought needs to be put into where your money goes. Some people who can afford it may not want to invest in crypto due the volatility and unpredictability of the market.
However, if the price does continue to rise to its predicted astronomical heights, investing in it, at least for the average person, will be a much more expensive endeavor.
Would you take on more debt to invest in Bitcoin? Do you think its price will continue to increase? Let us know in the comments below!
Images courtesy of Pixabay, Public Domain Pictures, and Bitcoinist archives.