Vitalik Buterin Follower Asks: Should I Take a Loan to Buy Crypto?

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Vitalik Buterin, CEO and founder of Ethereum and one of the most important men in the world of crypto, repeated the mantra that CryptoTips regularly gives to its readers as well: do your own research and beware that there are risks involved in investing in cryptocurrency.

Over the summer, he warned about the dangers of yield farming coins in the DeFi sphere, just as we did.

Personal loan

When a Vitalik follower on social media asked whether the fact that he had taken out a personal loan to invest in crypto was a good business decision, Vitalik retweeted the man’s demand, blacked out all personal info and then stated:

Please don’t do things like this. I would NEVER recommend anyone take out a personal loan to buy ETH or other ethereum assets.

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

The follower had asked Vitalik the following:

I took out a $46,250 loan today at 7.9% and bought 2.55 Bitcoin. By 2026 I will have to pay back $57,806. In December 2026, if Bitcoin is at $22,669 I break even.

Another respondent asked for more details and said that he had been trying to do such for weeks now. As the first one replied that he had been lying to his bank to get the loan in the first place, Vitalik felt obliged to call him out and advised his 1 million followers not to do this.

At that moment a storm of reactions was unleashed, with one follower claiming that such was easy for Vitalik to say as he is now a millionaire. To this the Ethereum founder replied:

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.

Risk Taking

This is not the first time Vitalik has reacted harshly against risk taking by members of the cryptosphere. Even though his Ethereum platform houses most of the DeFi coins and projects, Vitalik was one of the first over the summer to warn about possible overheating of the yield farming projects.

He also sounded the alarm against Sushi when it was rising stratospherically, saying:

Look up and remember who did and said what during the last week of SUSHI’s rise, and adjust your estimates of their credibility accordingly.