Click to Skip Ad
Closing in...
  1. Prime Day Deals 2021
    04:05 Deals

    Prime Day deals 2021: See hundreds of Amazon’s best deals right here

  2. Prime Day Deals
    11:01 Deals

    Check these early Prime Day deals with prices so low, it’s like Amazon made a mistak…

  3. Best Prime Day Apple Deals
    05:37 Deals

    Best Prime Day Apple deals: AirPods Pro, MacBook Air, and more

  4. Amazon Deals
    07:59 Deals

    10 deals you don’t want to miss on Sunday: Free $25 Amazon credit, $230 Windows 10 l…

  5. Govee Immersion
    03:00 Deals

    Govee’s Prime Day deals need to be seen to be believed

No, you shouldn’t mortgage your house to buy Bitcoin

December 11th, 2017 at 5:01 PM
Bitcoin price, how to buy

Until very recently, Bitcoin was a pleasant fantasy for people who wanted to start crypto-micronations in the ruins of failed European cities. But thanks to recent rampant speculation, the price of Bitcoin is hitting all-time highs on a minute-by-minute nation, and more and more people want in.

Now, to acquire Bitcoin, you either need cheap electricity and a small server farm, or some good ‘ole fiat currency. Unfortunately, there are also banks out there that will gladly mortgage your house to buy Bitcoin, and some people are taking them up on it.

“We’ve seen mortgages being taken out to buy bitcoin. … People do credit cards, equity lines,” Joseph Borg, president of the North American Securities Administrators Association, told CNBC today. “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.”

The risks here seem obvious, but let’s run over them again, because clearly, the people in the back haven’t worked this out yet. Bitcoin is a crypto-currency; unlike dollars or pounds or kroner, there’s no national goverment backing it up. It requires more energy than Denmark to keep online, something that’s only profitable right now because Bitcoin has increased in value faster than swimming lessons on the Titanic.

Anyone looking at a chart can see that Bitcoin is either a huge bubble, or a brand-new financial instrument without any kind of precedent. If you’re willing to literally bet your house on the difference between the two, then go right ahead. For everyone else: Maybe just start with the credit cards, mmkay?

Popular News