Americans Lay Their Homes to Invest in Bitcoin
December 12, 2017
Nowadays the interest in Bitcoin is becoming a mania. It can be seen in the actions of some American families who mortgage their own flats and houses and invest the money they get in Bitcoin. This was reported by the famous American financial regulator Joseph Borg. He compared the currency with the tulip mania.
"Now there is a period of mania. Then there should be a leveling," said Borg, who works for the Securities Commission of Alabama.
Moreover, he added that cryptocurrencies and blockchain can be a part of our life, but he does not know what will come out of Bitcoin. Besides, Borg noted that the opening of bitcoin futures trade has not made the cryptocurrency legitimate. It should be underlined that last Sunday's exchange of СВОЕ financial derivatives
"While this technology is developing and spreading, regulators have to understand what this innovation can bring. It is still under study. Though we are investigating Bitcoin from the point of view of money transfer, that is not all, "Borg said.
In addition, Borg noted that it is not worth investing in Bitcoin if its financial opportunities are limited.
"Bitcoin is not something that a person with an annual income of $ 100,000 wants to invest in, if he has a mortgage and two children studying at college," Borg said.
At the same time, he underlined that he knows some cases when people take mortgage loans to invest in cryptocurrency.
"We are aware of the cases when people mortgage their own housing to invest in cryptocurrency. People take mortgages, draw up credit cards, "he said.