As of the time of writing this article, the price of Bitcoin in Coinbase exceeds $8,000, a figure much higher than the 817 euros that were worth at the beginning of 2017. This fever has caused this virtual currency to become more mainstream, and many people have decided Invest in this asset in recent weeks.

Blinded by these figures, some people have come to ask for loans to buy Bitcoins. This is what president of the North American Association of Securities Administrators Joseph Borg said in an interview with CNBC.

“The cryptocurrencies are here to stay.”

Borg says they have seen people “asking for mortgages, using credit cards and lines of credit” to spend that money on Bitcoins. In addition, he has taken the opportunity to leave a message to those who are thinking of going in this direction bad idea loans:

“A person who makes $100,000 a year, has a mortgage and two children at the University should not invest in this.”

Anyway, he says that “cryptocurrencies are here to stay”. Borg wonders if Bitcoin will survive, but he’s sure Blockchain will. It declares that this virtual currency is in the “mania” phase, and believes that its value will probably fall to balance its supply and demand.

A Very Dangerous Cocktail

It is normal for many people to think about investing in Bitcoin right now, as it is one of the most revalued assets in 2017, experiencing a rise of 1,800%.

Its extreme volatility is something that can be seen in a positive and negative way, and it is currently unknown what will happen in the coming months. This combination of factors reminds us that we must be very cautious when investing in it.

Bitcoin Coinbase

If we ask for a loan, buy Bitcoin at a certain price and then the price drop sharply, we would be facing a serious problem since we would have no way to deal with the debt we have contracted with the bank, and this is one of the students finance mistakes.

As we have heard many times in recent months, the smartest thing to do would be to invest a quantity of money that “you can afford to lose” and that you do not need in the medium / long term. This concept is very difficult to ask for a credit card or a mortgage.

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