Coinfomania: Where blockchain and cryptos live.

Vitalik sold half of his bitcoin bag in 2013 because he feared it would go to zero

Vitalik Buterin, Ethereum’s co-founder recently shared that he sold off half of his bitcoin seven years ago for fear of going broke if the price tanked to zero.

The Ethereum co-founder made the confession in response to a tweet in which Peter McCormack, an Australian Podcast host who had mentioned in a tweet that he took out a loan to acquire bitcoin. In response, Buterin noted that he would never recommend anyone to take out a personal loan to buy ETH.

Some crypto users argued that Buterin is only saying that because he’s a millionaire but taking personal loans to buy crypto is worth the risk for the average investor. 

Buterin further revealed that seven years ago before the birth of the Ethereum blockchain, he “had only a few thousand dollars of net worth,” with part of it in bitcoin when Bitcoin was just trading above $100.

However, Buterin noted that he sold half of his bitcoin so that he wouldn’t be broke if the cryptocurrency failed to succeed. 

Today, the Ethereum co-founder has an estimated net worth of $200 million, most of which is held in ETH. But he still deemed it fit to sound financial advice that crypto investors should “never take out a personal loan to buy ETH or other Ethereum assets.”

Replying to the tweet, McCormack said he has gone broke on several occasions.

While Buterin remains a significant player in the crypto industry, he has always made it a point of duty to ask new investors to tread carefully with bitcoin and other crypt0 assets because of the price volatility. He advises that while in search of profit, investors must also remember that they can lose out on everything.

Vitalik had previously aired a similar view with regards to Ethereum-based decentralized finance(DeFi) protocols that made the wave this year.

Referring to DeFi as “risky,” he argued, “DeFi is still fine, but dont act like it’s a place where you should advocate for a lot of regular people to put their life savings into.”

 

Affiliate:  Get a Ledger Nano X for $119 So That Hackers Won't Steal Your Crypto!

Follow us on Twitter, Facebook, and Telegram to receive timely updates. Subscribe to our weekly Newsletter.