The co-founder of Ethereum has warned his followers not to take out personal loans to buy ether or other cryptocurrencies
Ethereum co-founder Vitalik Buterin has warned his followers not to take out personal loans to fund the purchase of Ether (ETH) or any other cryptocurrency. Buterin made this known yesterday through a tweet and addressed his one million followers on the social media platform.
Buterin tweeted, “Please don’t do such a thing. I would NEVER recommend anyone take out a personal loan to buy ETH or any other Ethereum asset.” in the hope that they will make enough money to pay back the loan and make some extra cash.
His advice comes despite the fact that cryptocurrencies have appreciated in value over the past decade. Bitcoin and Ethereum have been particularly impressive so far this year, rising over 150% since early 2020.
Despite the great promises made by cryptocurrencies, Buterin advises people to proceed with caution. He announced that it was worth a few thousand dollars seven years ago, before starting Ethereum. However, he sold half of his bitcoins to make sure he wouldn’t be broke if bitcoin goes to zero.
Ether and other cryptocurrencies have seen massive gains so far this year. However, the extremely volatile nature of cryptocurrencies makes them risky investment vehicles for most people. Cryptocurrency prices tend to fluctuate high and low and it is difficult to accurately identify price movements. Bitcoin has been in bearish mode since hitting its all-time high in 2017, and it took nearly three years for the cryptocurrency to hit a new all-time high.
Despite Ethereum’s massive rally this year, it’s still a long way from its all-time high of $ 1,432.
Buterin and other Ethereum developers have worked hard to launch Ethereum 2.0 and complete the migration of the network to a Proof of Stake protocol. At launch, Ethereum would move from a mining-based consensus to a staking consensus as the network aims to reduce power consumption on the blockchain.
The first phase of Ethereum 2.0 went live earlier this month. Ethereum 2.0 is defined as a generalized blockchain that supports decentralized computerized applications. The Ethereum network would support various apps from iPhone games to government bonds and other assets in the financial markets.