Tuesday, December 12, 2017

Bitcoin may or may not be in a mania, but many of the investors buying it certainly are

While talk about whether Bitcoin is in a bubble or asset mania is certainly up for debate, with extremely good points for and against this coming on both sides.  However one thing is definitely for certain, and that is that many investors buying cryptocurrencies are themselves caught up in a mania.



Bitcoin, which skyrocketed above $19,000 in value last week, is in a “mania” phase, according to securities regulator Joseph Borg who said some people are even borrowing money to get in on the action. 
“We've seen mortgages being taken out to buy bitcoin… People do credit cards, equity lines," he told CNBC. 
The president of the North American Securities Administrators Association (the oldest investor protection organization in the world), Borg said: “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.” Russia Today
The most famous story of this type of mania comes from the Netherlands where a Dutch family sold everything... from their house to their shoes to put it all in Bitcoin.
Didi Taihuttu, his wife, three kids and their cat bet all they have on bitcoin. The Dutch family of five is in the process of selling pretty much everything they own — from their 2,500-square-foot house, to their shoes – and trading it in for the popular cryptocurrency. They have moved to a campsite in the Netherlands, where they're waiting for bitcoin to really take off. 
It's only been a few months, but the 39-year-old father of three says he doesn't regret a thing. "We were just like – sell it, sell it, what can we lose? Yeah, we can lose all the material stuff. Yeah, we can lose all our money. Yeah, we don't have three cars anymore. We don't have the motorcycle anymore. But in the end, I think we, as a family, will still be happy and just enjoying life." -
CNBC 

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