People Mortgaging Their Homes To Buy Bitcoin, Report Says

CBS Local — How much would you put at risk to invest in the hottest digital currency in the world? For some people, the skyrocketing value of Bitcoin is worth putting their own homes at stake.

According to reports, a number of investors looking to cash in on the soaring prices have resorted to putting their houses up as collateral to fund the venture.

“We’ve seen mortgages being taken out to buy bitcoin. People do credit cards, equity lines,” Joseph Borg of North American Securities Administrators Association said, via Business Insider.

The president of the securities firm added that he believes the risks outweigh the rewards tied to the popular cryptocurrency. “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.”

Economic experts have started to speculate when the bubble will burst on Bitcoin’s value. The digital currency has already taken a sharp dive after reports that hackers were able to steal tens of millions of dollars worth of Bitcoin on Dec. 7. That same day, the internet currency soared over $4,000 in value to new record prices as it passed the $16,000 mark.

“There definitely are some risks — it’s not a perfect technology,” Morningstar analyst Jim Sinegal said, via CBS Chicago. “If you have money in the bank, the bank is protecting your money. If you have money in bitcoins, it’s all your responsibility.”

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