Investors in cryptocurrency are licking their wounds after the cryptocurrency market crashed, some digital currencies have become basically worthless wiping out personal savings. Bitcoin, the biggest and oldest of the cryptocurrencies, is down nearly 60 percent since the start of the year floating around $20,000.
On a recent episode of the Impaulsive podcast, Jake Paul’s older brother Logan Paul, told viewers that despite tens of millions in winnings, his younger brother is “poor”. For his part, Logan says he’s lost over half a million in the crypto winter.
Is Jake Paul really broke?
The YouTuber-turned-boxer was featured on Forbes’ Highest-Paid YouTube Stars list published in January 2022, in second place after MrBeast. The American business magazine estimates he raked in $45 million in 2021, 90 percent of that attributed to income from his successful boxing career.
However, according to Jake he brought home more than that. On an Instagram he related a story about his dad asking him if he really made that much, thinking the publication had overestimated. “The answer was, ‘yes Dad, and in fact the numbers are slightly low’,” the celebrity said.
He’s won five times as a professional taking home multi-million dollar purses.
Is Jake Paul really broke?
Depending on how much of his 2021 earnings he’s sunk into Bitcoin and other digital assets, he probably won’t be homeless anytime soon, claiming that he got into the game early. If he got on the 2021 train before the spectacular rise in value, and not when it was at its peak, he might be alright financially speaking.
Last year on the YouTube channel BitBoy Crypto he said he started investing when he was just a teenager. “I invested in Bitcoin when it was $100 when I was 16 years old and it was the craziest, best investment of my life,” Jake claims. “Ever since that moment I’ve sort of been involved in crypto and still investing to this day, buying Bitcoin, buying Ethereum.”
Bitcoin peaked in November last year around $60,000 but it is now hovering around a third of that. Other cryptocurrencies have had their own major peaks at different points over the past year, but all have seen their valuations get absolutely clobbered.
Like the rest of the market, investors bailed on fears of inflation and aggressive rate hikes by the Federal Reserve to tame it seeking safer investments to store their wealth. Digital assets have taken larger loses than the markets at large, considered a casio or “Ponzi scheme” by critics.
Even Impaulsive co-host George Janko called them “Black Jack chips”. Whether or not Jake Paul is broke, the crypto crash must be hurting though as he took to Twitter to blame President Biden for the “plummeting” value of digital assets. Fellow denizen took him to task for his post, some pointing out that they’re designed to be decentralized and out of the government’s control.