Vitalik Buterin warns: do not take out a loan to buy cryptocurrency
Vitalik Buterin is the founder of Ethereum. In a tweet today he warned investors: „I would never recommend taking out a personal loan to buy ethereum or other ethereum assets“.
Why does Vitalik warn?
Buterin responds to an 11 December tweet in which podcaster Peter McCormack (name removed from tweet) says he borrowed $46,000 to buy bitcoin. The investor is determined that bitcoin is going to rise and that he will be able to repay his loan in 2026, while keeping his profits. But is it wise? Vitalik Buterin would never do it himself.
Peter McCormack pushes just as hard at Vitalik Buterin: „I agree, don’t take out a loan to buy ethereal. In another tweet he continues: „In fact, never buy ethereal. Even if you are a billionaire and sweat out dollar notes. Buy bitcoin!“
Buterin sold half of his bitcoins in 2013.
Back to Buterin’s tweet. Someone reacted to the tweet by saying: ‚You are a millionaire, for us ordinary people this is worth the risk‘.
Vitalik responded with a personal anecdote: „Seven years ago, before Ethereum existed at all, I had a few thousand dollars in assets. I had to sell half of my bitcoins at that time to make sure I would not go broke if bitcoin became worthless‘.
If you are worried about Buterin, the Ethereum founder now has his sheep on dry land. According to Decrypt, this address comes from Buterin. If that is true, then Vitalik Buterin now owns at least 194 million dollars.
Buterin has also used this address in the past, which now has a quarter of a million dollars on it. In December 2018 Buterin sent another donation of 1,000 ether with this address to Ethereum Protocol Prylabs. With the ethereal exchange rate at that time, that was about $829,000!
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