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‘Bitcoin Mania’: People Take out Mortgages to Invest in Cryptocurrency

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by Sofiko Abeslamidze · 2 min read
‘Bitcoin Mania’: People Take out Mortgages to Invest in Cryptocurrency

Bitcoin levels up while Americans mortgage their property against the piece of crypto pie.

Bitcoin market price has exhibited volatility movement over the last year. Started with $1, 000 per 1 Bitcoin, now it has more than $17,000 under its belt and the amount is rocketting on daily basis.

Taken mentioned into account, Bitcoin might seem a very endearing investment in case you have a million dollars in spare. Otherwise, every financial analysts will advise you to stay away from Bitcoin rush.

Central bankers, economists and other critics of bitcoin have been sounding the alarm over its soaring price and other risks, such as the possibility of cryptocurrency being used for money laundering.

According to the Joseph Borg, president of the North American Securities Administrators Association, Bitcoin is now in “mania” phase and its value is overinflated.

On his interview to CNBC Mr. Borg stated:

“We’ve seen mortgages being taken out to buy bitcoin…People do credit cards, equity lines. 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.”

It is clear that in terms of overwhelming speculating demand on Bitcoin, cryptocurrency market is flooded with wannabe investors, who aimes to make massive margin out of it. Eventually it is likely to result into emerging of financial bubble, which explosion will affect everyone.

Regarding investment security of Bitcoin, the veteran regulator says that he sees the future of blockchain and cryptocurrency as the mean of payment and money transmission. However, he is not certain about the fate of Bitcoin within the crypto trading space.

In addition, Mr. Borg claims that at some point in time there is got to be a leveling of its price and whether Bitcoin will survive all this speculative interest remains unclear.

That is given, innovation in technology always outruns regulations and it takes time for the financial system and market to adjust to the innovations and come up with solutions needed to control its members as well as protect them.

Given the stakes, bitcoin enthusiasts are not inspired by the idea of government interference within crypro environment expecting its negative affect on Bitcoin value.

Nevertheless, considering the fact that Bitcoin mania starts to expand into the world of fiat money and real estate, it is time for banks and insurance companies to ponder the restrictions to protect their assets.

Bitcoin News, Cryptocurrency news, News
Sofiko Abeslamidze

Sofiko is a freelance fintech copywriter at Coinspeaker. With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.

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