cryptocurrency By Chase Rimmer / May 23, 2018 While using Bitcoin to pay for studies sounds innovative enough, the flipside to this equation is that some student loans are paying for Bitcoin. There are a number of training initiatives that allow students to learn more about cryptocurrencies and the technology behind them, however, students are not using these funds to further their studies in traditional areas of learning. With Bitcoin deemed a high-risk investment, this is a high-stakes move for anyone and the chances of getting stuck in debt for the wrong reasons are high. 21% of Students Use Their Student Loans For Bitcoin While student loans are to be used for studying, there is an influx of students using their funds to purchase cryptocurrencies and the volatility of cryptocurrencies does not seem to be putting them off. While a proportion of student loans might be paid directly towards tuition or housing, there is a portion that offers some discretion and that is where the flexibility occurs. Burning the money on high-risk investments only places pressure on those essential items that need to be purchased, which means dipping into further credit. If things don’t go to plan and the value of the cryptocurrencies take a knock, students will have to repay the loans and have nothing to show for it – not even a degree. Other Ways To Ease Up The Cash Flow For Investment There are a number of ways to get into the Bitcoin game without having to touch emergency savings or use debt to purchase the commodity. Bitcoin purchases can be made from as little as $7, which should be easier to manage than a loan with interest. Free up the cash flow by slimming down monthly payments, spending less on takeout and Starbucks, and by using reputable institutions to purchase your Bitcoin, where brokerage fees won’t eat into the investment. As this is a high-risk investment, it’s important to only use disposable income. Financial Gymnastics To Try And Manage The Fallout Tanking prices are inevitable throughout the course of cryptocurrency cycles as with all other investments. Early in 2018, currencies such as Bitcoin, Ethereum, and Ripple took a substantial knock which left tens of thousands of investors out of pocket. South Korea is a perfect example of why taking funds not meant for investing is a high risk where these currencies are concerned. “Bitcoin Blues” – a phrase coined by psychologists – refers to the bubble of bliss over these currencies bursting when they dropped. The potential for financial freedom and getting out of debt is the lure and when the opposite happens, depression follows. Youngsters in South Korea seem to be the hardest hit, as they want to get out of the cycle of the previous generation, which lived to work. Anyone who spent a few dollars on Bitcoin in 2009 will be smiling right now, despite the massive decline that happened at the beginning of 2018. The currencies are slowly starting to gain ground again, but the future is still highly uncertain, making it a tough call to determine whether taking out a loan to purchase currency is a good idea.