NEW YORK—Fear of missing out on the Bitcoin craze has some underfunded investors placing bets with plastic, although the plunge in prices may have many now fearful of having gotten in and with monthly reminders on their account statements.
About 18% of Bitcoin investors used a credit card to fund purchases of the cryptocurrency, according to a LendEDU survey of 672 active investors conducted in December, Bloomberg reported.
“Of those, 22% could not pay off their balance after buying the digital coin. Even beyond those surveyed, interest in buying Bitcoin with a credit card has surged, according to Google Trends,” stated Bloomberg.
But going into debt for exposure to such a volatile asset, prone to price swings of plus or minus as much as 30% a day, is very risky, reminded Bloomberg.
Nearly 90% of those surveyed by LendEDU who said they hadn’t paid off their credit card bill said that they plan on doing so using money generated from selling their Bitcoin, Bloomberg noted.
As CUToday.info has reported, the price of many cryptocurrencies has plunged since the year began.