The Amount Of Cryptocurrency Loans Increased By 2 Times In The 4Q of 2018
According to the report of Genesis Capital, in November and December 2018, a record was set for the amount of loans issued for the purchase of cryptocurrency. In the 4Q, the company issued loans in the amount of $ 500 million, twice as much as the figure for the two previous quarters combined.
There was a gradual increase in the amount of loans issued for the purchase of digital assets during 2018. In late November, the volume of loans began to grow sharply: in December, the amount increased from $ 800 million to $ 1.1 billion. The most popular loans to buy Bitcoin (BTC). Last year, the company's clients bought on credit from 150 000 to 200 000 BTC.
Genesis Capital also reported an increase in the amount of loans taken on the security of Bitcoin. The most borrowers invest their money in digital assets to increase the cryptocurrency investment portfolio. According to the company's specialists, the current situation leads to an increase in demand for Bitcoin. However, the clients of the company who took out a loan for the purchase of virtual currency begin to sell it in order to pay off the creditors, therefore the pressure on the Bitcoin rate is being put.
Buying a cryptocurrency on credit led to confusion. Either investors have some secret information about the upcoming pump, or they are risky players. Cryptocurrency whales will receive about the same amount of profit for any course Bitcoin - whether it is a million dollars or ten dollars. Therefore, rumors about the rise in price of BTC remain only rumors.