All Rights Reserved. CNBC Newsletters. Unlike the real estate bubble and its subsequent bust, bitcoin speculation is built on a less robust foundation. Bitcoin is in the «mania» phase, with some people even borrowing money to get in on the action, securities regulator Joseph Borg told CNBC on Monday. Transportation CityLab University: Induced Demand When traffic-clogged highways are expanded, new drivers quickly materialize to fill them. Or double in value!
According to regulator Joseph Borg, the bubble’s going to burst.
When Joseph Borg opened his email on Monday morning, he found three new messages, all fervently advertising the same thing: morhgage. Later that day, Borg, who focuses on consumer protection in Alabama, went on cable news to warn potential buyers about heeding these come-ons. Homeowners can borrow up to around 80 percent of their mortgage, depending on the value of the home and their credit score, paying back that loan at an average interest rate of about 5 percent. But if they default, banks mrotgage foreclose on their homes. Unlike the real estate bubble and its subsequent bust, bitcoin speculation is built on a less robust foundation.
According to regulator Joseph Borg, the bubble’s going to burst.
Thinking back to the first time you heard about Bitcoin is probably painful, and not just because it might conjure up memories of the dreadlocked white dude you went to college with who knew what was good with the dark web. The most gut-wrenching fact about this so-called cryptocurrency is that you’d be rich as hell right now had you actually listened to that loathsome and unlikely financial adviser. To put that in real terms, remember that guy who made news for buying two pizzas with Bitcoin back in ? Predictably, this news and its attendant promise of easy money has made Americans go insane. Meanwhile, the phrase «buy Bitcoin with credit card» was at least recently trending on Google.
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When Joseph Borg opened takign email on Monday morning, he found three new messages, all fervently advertising the same thing: taking out a mortgage to buy bitcoin. Later that day, Borg, who focuses on consumer protection in Alabama, went on cable news to warn potential buyers about heeding these come-ons. Homeowners can borrow up to around 80 percent of their mortgage, depending on mortgqge value of the home and their credit score, paying back that loan at an average interest rate of about 5 percent.
But if they default, banks could foreclose on their homes. Unlike the real estate bubble and its subsequent bust, bitcoin speculation is built on a less robust foundation. Gung-ho crypto buyers might argue that plenty of investments are equally speculative. Next month, another cryptocurrency, like Ethereumcould overtake bitcoin in popularity, said Borg.
In a matter of hours, your digital fortune could become worthless. Or double in value! They get frenzied about it. Those who invested last year—or even last month—and are pulling out now rode the wave best, says Borg. When Borg got off the air that afternoon, he checked his email. In the history bbitcoin finance, however, the bitcoin craze is not really so unique. Crypto-critics inevitably cite the Dutch tulip-mania of Like those earlier bubbles, Borg says, the bitcoin one is doomed to burst.
Sarah Holder is a staff writer at CityLab covering local policy, housing, labor, and technology. When traffic-clogged highways are expanded, new drivers quickly materialize to fill.
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Sarah Holder sarahsholder Feed Sarah Holder is a staff writer at CityLab covering local policy, housing, labor, and technology. Richard Florida February 28, Transportation CityLab University: Induced Demand When traffic-clogged highways are expanded, new drivers quickly materialize to fill. Benjamin Schneider September 6, Linda Poon May 24, Kriston Capps April 12, Kriston Capps December 17,
People Are Taking Out Mortgages To Buy Bitcoin
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When Joseph Borg opened his email on Monday morning, he found three new messages, all fervently advertising the same thing: bitcoin. Bitcoin’s price has exploded over the last two years, and touched a new all-time high on Monday. Linda Poon May 24, Whether it is bitcoin or not, I don’t know,» Borg said in an interview with » Power Lunch. Market Data Terms of Use and Disclaimers. Data also provided by. News Tips Got a confidential news tip? Bitcoin keeps soaring higher. Sarah Holder sarahsholder Feed Sarah Holder is a staff writer at CityLab covering local taking out a mortgage to buy bitcoin, housing, labor, and technology. The price on Coinbase, which accounts for a third of bitcoin trading mortggae, is often at a premium over other exchanges. The CME plans to ouf its bitcoin futures Dec. Search icon A magnifying glass. Get this delivered to your inbox, and more info about our products and services.
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