Low-income households in the US are leveraging crypto gains to achieve homeownership, as per a report by the Office of Financial Research. The study, based on tax data, highlights the impact of crypto on financially vulnerable communities. 'High-crypto' areas, where over 6% of households hold crypto, have witnessed increased mortgage and auto loan activities alongside crypto market growth. In these regions, low-income families saw a surge in mortgage applications and balances, indicating the use of crypto profits to access larger loans. The report also notes a rise in auto loan balances in high-crypto zones. While positive trends in homeownership have been observed since Bitcoin's inception, researchers caution against rising debt and leverage risks among low-income households with significant crypto exposure. The potential for financial instability during economic downturns or crypto market slumps is highlighted, emphasizing the need for monitoring and risk management. Read more AI-generated news on: https://app.chaingpt.org/news

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