Ethereum Co-Founder Vitalik Buterin Discourages Followers against Getting Loans to Buy Crypto
Buterin has asked users to maintain caution with the volatile asset class and revealed that he had sold half of his Bitcoin holdings in 2013 to avoid going broke.
On Monday, December 14, Ethereum co-founder Vitalik Buterin warned his followers against taking any personal loans to buy ETH or other crypto assets. In his Twitter post, Buterin said one should not get personal loans for buying in the hope that it would appreciate few years down the line.
Buterin was responding to a conversation on Twitter.
Please don’t do things like this. I would NEVER recommend anyone take out a personal loan to buy ETH or other ethereum assets. pic.twitter.com/zCbbtUlvtQ
— vitalik.eth (@VitalikButerin) December 14, 2020
Besides, he also told about he sold half of his Bitcoin holdings in 2013 to avoid going broke. Buterin added:
“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”.
While Buterin was disclosing all cards to his followers, he also revealed that he draws a $154,000 yearly-salary from the Ethereum Foundation. Previously, Buterin has also said that he owns less than 0.4% of the circulating supply of ETH. As per the current ETH price, Buterin’s net-worth could be anywhere between $400-$500 million. Buterin has his personal crypto holdings in Bitcoin (BTC), Ethereum (ETH), and other crypto assets.
ETH Price and ETH Staking amid Comments on Crypto from Buterin
At press time, ETH is trading at a price of $582 with a market cap of $66.3 billion. Ethereum (ETH) has been under pressure over the last week with major resistance at $600 levels. As per on-chain crypto data provider Santiment, the amount of new ETH addresses made a single-day high last Saturday, December 12.
📈 The amount of new #Ethereum addresses hit a single-day, 35-month high Saturday. Our network growth metric picked up $ETH reaching 177.5k addresses created. Notably more addresses interacting on an asset’s network is a very promising indicator for bulls. https://t.co/Y6Uvhzyemq pic.twitter.com/yIv2SOYhDS
— Santiment (@santimentfeed) December 14, 2020
Also, Ethereum continues to attract institutional players while drawing more investment simultaneously. As per the filing with the SEC, the Grayscale Ethereum Trust (ETHE) purchased around $75 worth of ETH in the last week alone. This takes the total assets under management for ETHE to above $1.7 billion.
On the other hand, Ethereum miners are also offloading their holdings during this recent bull rally. Since mid-October, the Ethereum miners’ holdings have dropped from 1.13 million ETH to 1.016 million ETH.
Moreover, the number of ETH staked in deposit smart contracts continues to grow. So far, nearly $1.5 million worth of ETH has been moved to the ETH 2.0 deposit.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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