More than a fifth of current students invest money in the world of virtual currencies – and they use their student loans to do so.
According to a new survey published by The Student Loan Report, 21.2% of active students with student loan debt admit to using financial aid to fund an investment involving cryptocurrencies, such as bitcoin.
Drew Cloud, author of the report, says students are able to get by, claiming that the extra money is used for “living expenses” and that there is essentially no system in place for it. ‘ensure that the borrower uses the remaining money for this. goal.
Last year, cryptocurrencies exploded onto the investment scene, with bitcoin – the first and most notable of all cryptos – growing from record highs of $ 900 to all-time highs of $ 20,000, prompting d ‘other digital currency startups to enter the market.
However, this year, the days of astronomical price growth seem far away. Bitcoin and ethereum (the second largest crypto on the market) have both fallen significantly from their all-time highs. According to Coinmarketcap.com, the price of bitcoin is around $ 7,410 and ethereum is priced at $ 401.
Additionally, the big tech giants Twitter, Facebook, and Google have all made announcements in recent weeks and months to ban all ads for cryptocurrencies in a bid to crack down on blockchain scams tricking young people into invest.
Facebook said in a blog post in January that it would block ads that “promote financial products and services frequently associated with deceptive or deceptive promotional practices, such as binary options, initial coin offers and cryptocurrency. “.
Despite criticism of digital currencies by tech giants as well as financial regulators, some celebrities have still embraced the technology. FOX Business previously reported that Winter Olympian Apolo Ohno and NFL star cornerback Richard Sherman have both invested in companies to promote blockchain, the technology behind cryptocurrencies.