People are Buying Bitcoin with Debit and Credit Cards
Some people afraid of missing out on the Bitcoin Bull Run has underfunded investors placing bets on credit.
The data suggests that about 18% of Bitcoin investors used a credit card to fund purchases of the cryptocurrency, according to a survey of 672 active investors conducted in December.
Of those, 22% could not pay off their balance after buying the digital currency.
Many more investors are using their debit card to make their buys.
Even beyond those surveyed, interest in buying Bitcoin with a credit card has surged, according to Google Trends.
But going into debt for exposure to such a volatile issue, prone to price swings of plus or minus as much as 30% a day, comes with heavy risk.
Such a move “is not a wise decision no matter which way it is spun,” a LendEDU research analyst wrote. “There is no guarantee that Bitcoin investment returns will be profitable in the long run, but one can guarantee that the credit card company will need to be paid back.”
Nearly 90% of those surveyed who said they had not paid off their credit card bill said that they plan on doing so using money generated from selling their Bitcoin.
Bitcoin registered a 1,400% gainer in Y 2017.
Currently, Bitcoin is trading at: 13,532.5146, -73.2402, or -0.54%, as of 8:48p GMT, the market is open.