Vitalik Buterin holds less than 10% in Bitcoin while ETH struggles
Ethereum (CRYPTO:ETH) co-founder Vitalik Buterin has publicly rejected the suggestion that investors should allocate at least 10% of their portfolios to Bitcoin (CRYPTO:BTC).
This statement came in response to crypto analyst Udi Wertheimer's claim.
Buterin revealed that his own Bitcoin holdings are below this recommended threshold and noted that he holds less than 10% in any asset outside of Ethereum.
His remarks highlight a strong commitment to Ethereum, indicating a cautious approach to diversification.
The current state of Ethereum's price has sparked discussions within the crypto community about investment strategies among key industry figures.
Despite the recent rise in Bitcoin's value, Ethereum has faced challenges, remaining stagnant below $3,500 after encountering resistance at $4,000 on multiple occasions.
Market experts have warned that without increased whale activity, Ethereum could potentially drop to a range of $2,800 to $2,500.
The low large transaction volume suggests that retail investors are currently driving the market rather than institutional players.
Buterin also addressed concerns regarding the impact of Layer 2 scaling networks on Ethereum's financial stability.
He dismissed the idea of abandoning these networks in favor of simply increasing the gas limit on Layer 1, arguing that such a move would undermine the network's social structure.
Instead, he proposed that Layer 2 solutions should enhance ETH's value by burning a portion of their fees or donating proceeds back to the community.
He emphasised the need for standardised cross-chain interoperability and stronger security measures to prevent censorship on privately operated Layer 2 chains.
“I hold less than 10% in BTC. But I also hold less than 10% in anything that’s not ETH,” Buterin stated, reinforcing his focus on Ethereum amid ongoing market discussions.
At the time of reporting, the Ethereum (ETH) price was $2,862.77.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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