Taking on debt to buy bitcoin is a bad idea

Personal Finance

Another problem with going into debt for cryptocurrencies is that people will have to pay back their debt before they see sufficient returns, said Erika Safran, founder of Safran Wealth Advisors. That may require tapping other resources, potentially creating further financial trouble.

“If you can stay on for long enough, I believe you will be rewarded,” Safran said about cryptocurrencies. “But in the short-term, you may not realize those funds you need to pay your credit card.”

Plus, there’s no promise of profit. At least some cryptocurrencies may soon be worth nothing — leaving people in a pickle, Borg said.

“Bitcoin has no underlying value,” he said. “If next month everyone decides bitcoin is passe and everyone moves to ripple, bitcoin goes to zero. Now you have more credit card debt, and what are you going to do with it?”

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