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...