There is a concerning trend among US college students that sees them spending their student loan money on cryptocurrencies. Yes, students are investing money in Bitcoin and other altcoins, and some people consider it gambling.
According to the survey carried out by the Student Loan Report website, every fifth college student has put some money into cryptocurrencies. The study asked 1,000 students who have taken loans recently and found that 21% spent that money on crypto.
While the vast majority of them are not gambling at actual Bitcoin poker sites, many investors consider trading in cryptocurrencies an act of gambling as well. Because of their volatile nature, crypto coins can either earn you a fortune or leave you penniless, all in a matter of days. It is this promise of quick wealth that attracts most investors. However, the same thing is the reason why some experts urge people to stay away from cryptocurrencies.
But how is this possible? Isn’t student loan money intended for college courses?
Well, yes and no. The majority of students borrow more money to cover their living expenses as well. And there is no way of checking how that money is spent.
Don’t get us wrong. We are fans of crypto, but even we agree that students shouldn’t invest the money from their loans into them. This is practically spending money that you don’t have. Sure, there are a couple of success stories, and some students did manage to repay their debts this way. However, these stories are few and far between.
We must admit that we never expected that college students would “gamble” their student loan money on cryptocurrencies. But then again, nobody anticipated that Bitcoin would reach almost $20,000 per coin, and it did.