Using Student Loans to Buy Bitcoin Will Only Lead to More Debt Woes

Cryptocurrencies continue to attract a lot of attention all over the world. Especially younger people want exposure to his volatile form of money. It now appears college students are investing in Bitcoin with their student loans. This type of irresponsible behavior needs to be nipped in the bud as soon as possible.

Student Loans for Bitcoin

Most people will agree Bitcoin and altcoins have always been mainly targeted at younger people. This new form of money is completely digital and makes a lot of sense to Millennials. Moreover, it is also an interesting investment opportunity, albeit one with serious risks. Given the volatile nature of these currencies, it is evident money can be lost a lot quicker than earned. Even so, it is not deterring students from buying Bitcoin over the past few months.

Especially college students show an increasing interest in cryptocurrency. On the one hand, that is a positive sign. It shows the current price volatility is not much of an issue when it comes to attracting new investors. The way these students go about things, however, raises a lot of questions. Using student loans to invest in Bitcoin is irresponsible and simply a bad idea in general.

While it is true these investments can work out just fine, they won’t for most users. More specifically, a lot of people lose money by investing in Bitcoin. The volatility of this market can make it impossible to make money for long periods of time. For those dealing with student loans, missing out on repaying it due to bad investments is something to avoid at all costs.

A Growing Pool of Debt

In the past decade, it has become evident most student loans take a decade or more to be repaid in full. This money should be used for educational purposes and expenses first and foremost. It is not a supplemental income to be used for cryptocurrency investing by any means. While the enthusiasm regarding crypto is understandable, irresponsible behavior is unacceptable.

A recent study by The Student Loan Report shows one in five used a part of their student loan to buy Bitcoin. Although it is unclear how much money they invest, it shows the train of thought is very strong. Even so, one has to wonder how smart this decision is. Using a debt to potentially put one in more debt is never the answer in this regard.

There is another issue when it comes to this type of activity. Right now, it is unclear if this is even legal to pursue this option. Buying Bitcoin has nothing to do with a student’s education by any means. We may very well see some major repercussions in this regard over the next few months. There is still a lot of uncertainty when it comes to Bitcoin and other cryptocurrencies as of right now.

Binance Moves To Malta As Prime Minister Issues Public Welcome

· March 23, 2018 · 6:15 am

The Prime Minister of Malta has publicly welcomed the world’s largest cryptocurrency exchange Binance as it announces it is relocating to the country.


Maltese PM To Binance: ‘Welcome To Malta’

In a fresh move confirmed by CEO Zhao Changpeng March 23, Binance will set up an office in the European nation and will close the requisite banking partnerships “soon,” Bloomberg reports.

Binance has continued its astronomical rise which saw it overtake all other global exchanges’ volumes in January.

Binance

This week, negotiations between the exchange and Japanese regulators moved the price of Bitcoin after local press sources misinterpreted the “dialog” as a de facto ban.

Discussing the Malta move, however, government leader Joseph Muscat was open about his bullish stance on the company.

“We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies,” he tweeted.

Zhao replied that he was “honored” to receive the vote of confidence.

Binance Influencing Maltese Regulation?

Speaking to Bloomberg, Zhao continued that Malta represented the ideal technological and regulatory environment to support Binance going forward.

“We are very confident we can announce a banking partnership there soon,” he said.

Malta is very progressive when it comes to crypto and fintech.

Zhao added Maltese lawmakers had sought him out with a view to informing Malta’s regulatory future.

According to Bloomberg, he “had recently been invited by the Maltese government to review an upcoming bill that was favorable to crypto businesses.”

A knock-on effect of the relocation is the European Union gaining its best-known cryptocurrency business to date, these previously being largely confined to Asia and the US.

Eastern European countries continue to host other popular exchanges including Bitstamp, while Japanese operator BitFlyer announced its move into the market in January.

What do you think about Binance moving to Malta? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter

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Monthly Web Traffic for Major Bitcoin Exchanges Falls by Half

Monthly Web Traffic for Major Bitcoin Exchanges Falls by Half

Markets and Prices

The disappointing price performances of the cryptocurrency markets in January and February have apparently driven many bitcoin traders to avoid checking on their exchange accounts. Estimations of the total number of visits to the trading venues based on web traffic show a sharp decline month over month.     

Also Read: University Student Gang ”Breaking Bad” Jailed For Dealing $1M+ in Drugs for Bitcoin

Exchange Traffic Takes a Nosedive

Monthly Web Traffic for Major Bitcoin Exchanges Falls by HalfThe total number of visits at the websites of major bitcoin and cryptocurrency exchanges has crashed in February. Generally speaking, looking across over a dozen top exchanges, web traffic seems to have peaked in December 2017 or January 2018 and fallen off by half in February, reaching a similar or lower number of visits to that of November 2017 for each website.

According to market intelligence tool Similarweb, the total number of visits at Coinbase was down 49% in February, from 123.5 million to 63.1 million, after reaching 169.5 million in December 2017. Kraken saw a decline of 56%, from 31.7 million in January to 13.8 million in February. Binance experienced a drop of 54%, from a peak of 191.5 million to just 87.3 million. Bitfinex was down 48% in February with just 18.3 million visits, compared with 35.4 million in January and 59.3 million in December 2017.

BTC Transactions Down

Monthly Web Traffic for Major Bitcoin Exchanges Falls by HalfThe obvious factor that could have caused this sharp fall in the number of visits to bitcoin and cryptocurrency exchanges is the weak price performance of all major cryptocurrencies in the first two months of 2018. In addition to that, the massive price rally of 2017 probably brought in a record number of new investors to the ecosystem in December, setting a very high bar that the following months failed to measure up.

The web traffic data also seems to corroborate the assumption that the similar sharp drop in the number of bitcoin transactions is due to less usage and adoption rather than just exchange batching hiding the total figure. As we reported at the time, by late February we saw just under 200,000 bitcoin transactions a day on average compared with almost half a million bitcoin transactions sent daily in mid December 2017. On the plus side, the less crowded market has finally been able to bring the fee costs down.

Do you think bitcoin exchanges will see an increase in web traffic during March? Share your thoughts in the comments section below!


Images courtesy of Shutterstock.


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