People Are Mortgaging Their Houses to Buy Bitcoin

As Bitcoin is becoming an important player, with attractive titles in terms of raising from $ 1,000 to $ 19,000 in a single year, in this case amateur investors are desperate to invest in Bitcoin.

According to Joseph Borg, director of the Securities Commission in Alabama, these investors are so ready to raise large debts and in some cases they are mortgaging their houses to buy Bitcoin.

"We've seen mortgages being taken to buy Bitcoin. People make credit cards and credit lines, "Borg said

Bitcoin made a step towards broader admittance after its debut at the Cowboys Global Markets Inc. last weekend. But, Borg does not see it that way. He is concerned about the lack of a regulator for Bitcoin and notes that they are having difficulty keeping up the pace of innovation of cryptovalues.

"As technology continues to accelerate and continues to grow, regulators need to understand what is going on with innovation and we are still trying to get educated," he said.

The billionaire who was enriched by Bitcoin, Grant Sabatier, wrote in his blog why he thinks buying cryptos is a bad idea.

Sabatier reportedly bought the currency when Bitcoin was trading for $ 200. Currently its portfolio is estimated at about 1,148,720 dollars. So Sabatier admits it was the easiest money he ever had. He warns young investors to follow his footsteps.

In his "Millenial Money" blog explains why now it's not the right time to make big purchases in Bitcoin.

"If you decide to buy Bitcoin, I encourage you to buy responsibly. Do not buy it by using more than 1 percent of net worth and be honest with yourself - Bitcoin is a risk, not an investment, "says Sabatier.

The same advice is supported by many financial experts, who discourage many amateur investors from investing in Bitcoin. The legendary investor Warren Buffett has remained calm about the recent rise of Bitcoin, but in 2014 he was quoted as saying "Stay away from it. The idea that Bitcoin has a great value, in my opinion, is just a joke. "