Would you give up your house for Bitcoin?
If I’m going to ask you, are you willing to give up your house for Bitcoin investment? Are you willing to take the risk of losing a house and own a Bitcoin investment instead?
What if one day, you found out that you are dying, what are you going to do with your wealth? Are you going to put it all on Bitcoin just like what this man did?
Either way, this one won’t end well.
Bitcoin exploded past $1,700 Tuesday, taking out new highs as 2017’s remarkable run for all virtual currencies spilled into another day.
A man going by the cyber handle gingerbreadfutters, if his post on Reddit is to be believed, isn’t taking profits. No, in fact, just the opposite. He says he’s taking out an equity loan of $325,239 on his house to buy 191 bitcoin BTCUSD, +0.71% Yikes.
The catch, he claims, is that he has an undisclosed terminal disease, which frees him up to take such a ridiculous risk.
“I decided to make my newest lunge, using what equity I have accrued on my estate over the past 10 years since the 2008 financial crisis,” he wrote. “If bitcoin reaches the 10k mark — which I see as a distinct possibility, or I would not have taken such a risk — I plan on moving to the West Coast and getting away from all the angry people here where I currently reside.”
Angry people were quick to criticize, as hundreds of comments poured in.
A fellow Reddit user by the name of Dispairsquid16 said the story rings familiar: “Almost like a high school chemistry teacher deciding to begin making and selling crystal meth due to a change in life circumstances.”
Some well-wishes from CryptoInvestor: “Firstly, let me wish you good luck. Second, let me tell you how much of an idiot you are.”
Is this the top? Indeed, says HukusPukus. “This is it. This is the signal I’ve been waiting for. Time to sell all my bitcoins and buy a house,” he wrote
Even the uber bitcoin bulls, like loserkids, had a hard time with this one.
“Though I’m 100% bullish on bitcoin long-term this is an incredibly stupid idea,” he wrote. “But you’ve already heard it from others. Either way, good luck.”
If Spencer Bogart, head of research at Blockchain Capital, has it right, gingerbreadfutters is definitely setting himself up for financial disaster.
The virtual-currency market has all the trappings of a bubble, Bogart said, adding that he thinks it could have more room to rise before a correction occurs. “It’s definitely unsustainable,” he explains, “though I don’t know if it’s in its final moments right now.”