Ter case you have not bot paying attention, Bitcoin is hot and (mostly) everybody wants a chunk of the activity.
Buy Bitcoin and you will see comebacks unheard of on Wall Street, or so the narrative has gone thus far. But for those looking to hop onto Bitcoin Mania at this stage te the spel, they will detect that the price of many virtual currencies are no longer the bargain they once were.
And, according to a fresh LendEDU poll, some Bitcoin investors are leveraging their own finances te order to get some skin ter the spel.
LendEDU polled 672 active Bitcoin investors and discovered that many of them are purchasing the crypto currency ter an exceptionally risk manner: incurring credit card debt.
Total Survey Results
1. Which of the following best describes how you funded your account to purchase Bitcoin?
a. 33.63% of Bitcoin investors answered “I used a debit card to fund and purchase.”
b. Legal.60% of Bitcoin investors answered “I used the ACH canap transfer process to fund and purchase.”
c. Legal.15% of Bitcoin investors answered “I used a credit card to fund and purchase.”
d. 16.22% of Bitcoin investors answered “Other.”
e. 13.39% of Bitcoin investors answered “I used a bankgebouw wire transfer to fund and purchase.”
Two. (Asked only to those who answered with “C”) After purchasing Bitcoin on your credit card, have you paid off your credit card balance?
a. 77.87% of Bitcoin investors answered “I paid off my credit card balance after purchasing Bitcoin.”
b. 22.13% of Bitcoin investors answered ” I did not pay off my credit card balance after purchasing Bitcoin.”
Trio. (Asked only to those who answered with “B” to the previous question) Are you convenient paying rente on your credit card spil a result of your Bitcoin purchase?
a. 70.37% of Bitcoin investors answered “Yes, I believe possessing Bitcoin is worth the rente expense.”
b. 29.63% of Bitcoin investors answered “No, I am worried about the rente expense.”
Four. (Asked only to those who answered with “B” to question two) Are you programma to pay off your credit card balance, accumulated by purchasing Bitcoin, by using the proceeds from the sale of your Bitcoin investment?
a. 88.89% of Bitcoin investors answered “Yes.”
b. 11.11% of Bitcoin investors answered “No.”
Five. (Asked only to those who answered with “C” to question one) Do you project on buying extra Bitcoin using your credit card?
a. 76.23% of Bitcoin investors answered “Yes.”
b. 23.77% of Bitcoin investors answered “No.”
Observations &, Analysis
Much of the gegevens that came from this poll of 672 active Bitcoin investors wasgoed fairly concerning.
Very first, more than half (51.78%) of respondents stated that they either used a credit or debit card to ?fund their account to purchase Bitcoin. Specifically, 33.63 procent of investors were using debit cards, while Legitimate.15 procent were using credit cards.
Why is this concerning? The virtual currency exchanges where Bitcoin is bought and sold will charge conversion fees when either a credit or debit card is used to find an investor’s account. Coinbase, the largest of the cryptocurrency exchanges, charges a conversion toverfee of Three.99 procent when a user uses his or hier credit or debit card to bankroll their account. ?
Obviously, this is not the most financially-savvy budge on the part of of a sizable percentage of Bitcoin investors, no one everzwijn wants to pay reserve than what is necessary, especially when dealing with something spil volatile spil Bitcoin. The wisest and most frugal way to fund a virtual currency exchange account would be through an ACH transfer, which is totally free of charge. Only Legal.60 procent of our 672 Bitcoin-invested respondents were paying for the cryptocurrency te this style.
However, this wasgoed not even the most pressing concern coming from the LendEDU poll. That recognition belongs to this data-point: 22.13 procent of Bitcoin investors did not pay off their credit card balance after purchasing Bitcoin.
Going into debt to buy Bitcoin is not a wise decision no matter which way it is spun. There is no assure that Bitcoin investment comes back will be profitable ter the long run, but one can assure that the credit card company will need to be paid back. Considering the average annual percentage rate (APR) on a credit card is 15.07 procent, a Bitcoin investor that finances their investment at the wrong time will find themselves te serious debt.
This is especially worrisome when the volatility of Bitcoin is taken into thought. Some of the world’s foremost financial minds predict the virtual currency could crash at some point. Strongly investing te Bitcoin via credit card only to have it crash overnight could lead to a nightmare financial screenplay.
Judging from the results our poll, most Bitcoin investors are not worried about a crash and believe that the comes back from their Bitcoin investment will be sufficient enough to pay back their credit card bills. For example, 70.37 procent of respondents that carried overheen their credit card balance stated that possessing Bitcoin is worth the rente expense. Additionally, 88.89 procent of that same pool of investors project on paying off their credit card bill from the money generated after selling their Bitcoin.
Is it possible that the price of Bitcoin resumes to skyrocket and the gamble thesis respondents are taking pays off? Undoubtedly, but that is not to say they are not still playing with fire. Using a large line of credit and carrying overheen one’s balance to build up financial leverage on Bitcoin and possibly take advantage of the virtual currency’s large price swings might pay thick dividends but may also leave him or hier ter insurmountable debt, made worse by rente.
Evidently, none of thesis fears are scaring off many of the Bitcoin investors that are using a credit card to purchase the cryptocurrency. Te fact, they are doubling down. 76.23 procent of this cohort said they have intentions to purchase more Bitcoin using a credit card.
All gegevens that wasgoed featured ter this LendEDU report came from an online poll commissioned by LendEDU and conducted online by online polling company Pollfish. Te total, 672 active Bitcoin investors were polled on the questions listed. Respondents were screened to ensure they were presently invested ter Bitcoin and then asked to correctly response followup information about Bitcoin so spil to dual screen them. The poll wasgoed conducted overheen a four day span, kicking off on December 8th, 2018 and ending on December 11th, 2018.
LendEDU wasgoed not compensated by a third-party for running this survey. LendEDU has no financial relationships with any companies who market Bitcoin or other cryptocurrency products.
Spil of December 18th, 2018, none of the employees on LendEDU’s editorial team own Bitcoin. ?