Vitalik Buterin, the co-founder of Ethereum, has been notably engaged on cryptocurrency social media platforms lately. However, his most recent post, which provided financial advice, has faced criticism from Ethereum investors.
On January 7, Buterin responded to a post discussing billionaires Bill Gates and Warren Buffett. In his response, he deemed their advice as “awful” and proceeded to share his own “actual financial advice.” However, the response has not been well-received by some members of the Ethereum investment community.
Ethereum’s Vitalik Buterin on Investing
The initial post by user ‘alex_avoigt’ suggested that Bill Gates initiated portfolio diversification by selling Microsoft shares after meeting Warren Buffet. The comment cautioning against diversification, stating, “Be careful with diversification and with friends who recommend it,” caught the attention of Vitalik Buterin.
Buterin’s financial advice largely resonated as sensible. He endorsed diversification, emphasizing the importance of savings and reaching a point where one can cover multiple years of expenses for financial safety, equating it with freedom.
However, he also recommended being conservative with the majority of one’s portfolio, implying a preference for low-risk investments, which stands in contrast to the inherently higher risk associated with cryptocurrencies.
In addition, Vitalik cautioned against utilizing more than 2 times leverage, aligning with a prudent approach to risk management.
The reactions to Vitalik Buterin’s financial advice stirred controversy, with crypto investor ‘CoinMamba’ expressing skepticism: “Good advice if you are already a millionaire. But these don’t apply to someone who is trying to get rich.”
Tether and VanEck strategist Gabor Gurbacs questioned Buterin’s current position on selling ETH, while Autism Capital remarked, “This doesn’t sound bullish.”
‘Dark Crypto Lady’ raised concerns about the consistent selling of Ethereum by Buterin and his friends, seeking clarification.
Commodities and futures trader ‘Googly’ expressed frustration with ETH’s recent price performance, stating, “However, I can’t take this advice anymore, I have over-invested in ETH, by a lot. It is what it is. Every day I am checking price and it’s underperforming.”
Notably, last week, Buterin humorously remarked, “In Ethereum, the worst thing that happens is people lose money.”\
Ethereum Price Outlook
To underscore the discussions around Vitalik Buterin’s financial advice, the Ethereum price has experienced a 2.4% decline for the day. As of the current writing during Monday morning trading in Asia, the asset has slipped to $2,196.
Furthermore, Ethereum has witnessed a nearly 10% drop since reaching its 2024 high of $2,434 on January 2. While Bitcoin remains in a consolidation phase, awaiting significant developments related to ETF news, Ethereum and other altcoins are undergoing a sell-off.
Ethereum has shown a delayed response during recent market upswings, with alternative layer-1 tokens like Solana and Avalanche outpacing its performance.
