Vitalik Buterin warns followers against taking loans to buy cryptos like ETH, BTC
Ethereum’s Vitalik Buterin took to Twitter to warn the crypto community against taking personal loans to purchase Ether and other cryptocurrencies. In a Twitter post published on Monday, Buterin asked his followers not to take out personal loans to buy ETH or other assets in response to a user’s tweet that he addressed. The anonymous user in question planned to take a loan to buy Bitcoin hoping to clear the loan, including the interest, as the cryptocurrency appreciates in value over the years. However, Buterin quickly warned:
Please don’t do things like this. I would NEVER recommend anyone take out a personal loan to buy ETH or other Ethereum assets.
In addition to this Buterin also went on to reveal that he sold half his bitcoin holdings in 2013 to avoid going broke. He explained in a tweet:
7 years ago, before ethereum even began, I had only a few thousand dollars of net worth. I nevertheless sold half my bitcoin to make sure that I would not be broke if BTC went to zero.
One of the most influential names in the crypto economy, Vitalik Buterin even publicly revealed that he earned 137,000 CHR per year ($154,000) from Ethereum Foundation. However, according to a 2018 report from Forbes, Buterin’s net wealth was roughly between $100 to $200 million at the time.