Defense Accuses DOJ of Providing 'Inaccurate' Information Regarding Sam Bankman-Fried's Laptop Access

Former FTX Executive Ryan Salame Faces Potential $1.5B Forfeiture Following Guilty Plea

Bitcoin Approaches Formation of Death Cross as Dollar Index Hints at Golden Crossover

More than two-thirds of cryptocurrency investors surveyed in a recent study had borrowed funds to purchase cryptocurrencies. Instead than using money or savings, individuals incurred debt to purchase their preferred cryptocurrency.

64 percent of those who purchased cryptocurrencies did so using one or more credit facilities.

This may have sounded like a good approach at the time. In contrast, the values of popular cryptocurrencies have decreased by as much as 100 percent during the past month. This decline will leave many investors with substantial losses. And they will still be required to return their initial loan.

Multiple cryptocurrencies reached record-high values in 2017, but since then, the market has declined. The value of seven of the world's main currencies has decreased over the past month.

Some investors are anticipated to remain calm, while others may panic and sell to limit their losses.

Investors by age distribution

Those between the ages of 18 and 24 are the most likely to have borrowed money to purchase their favorite cryptocurrencies through a loan.

  • 18 – 24: 70 percent
  • 25 – 34: 64 percent
  • 35 – 44: 68.9 percent
  • 45 – 54: 62.5 percent
  • 55 – 64: 45 percent
  • 65+: 25 percent

 

What did they borrow?

Various credit facilities, including credit cards and overdrafts, have been utilized to finance bitcoin investments.

  • Credit card – 35.5 percent
  • Overdraft – 19.3 percent
  • Personal loan – 14.6 percent
  • Secured loan – 9 percent
  • Payday loan – 7.6 percent
  • Re-mortgage – 3.3 percent

Holly Andrews is the Chief Executive Officer of KIS Finance. "...some credit card issuers will see this type of transaction as a cash advance, which will incur a cash advance fee and a higher interest rate. Therefore, if you are considering investing in cryptocurrencies, you should only invest money that you can afford to lose, and the investment should be funded by income and/or savings rather than a credit facility."

While the crypto market is turbulent, many analysts anticipate that the price of the most popular cryptocurrencies will return to record highs, while others say it is an indication of a worldwide recession. In the long run, borrowing money to purchase cryptocurrencies could be a wise choice. Time alone will tell.