According to one US regulator, the craze of bitcoin continues apace: so eager are people to join in on the latest trend that they are taking out mortgages on their homes in order to buy up the rocketing cryptocurrency.
People are loaning cash against their home for bitcoin, said the director of the Alabama Securities Commission and the president of the North America Securities Administrators Association, Joseph Borg, during an interview with CNBC.
And it is safe to say that he does not think that it is a great idea as he described the ascent of the cryptocurrency as a “mania curve” that will eventually level off “at some point.”
Borg said: “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.”
The rise of Bitcoin has attracted discussions of a bubble as it soared to record highs past $17,000, continuing an unusual upward trajectory in which it has gained over 1,000% this year.