Pavel Durov, the founder and CEO of the messaging app Telegram, has revealed that a significant investment in Bitcoin made over a decade ago is the primary source of funding for his personal lifestyle. During an appearance on Lex Fridman's podcast, the tech entrepreneur stated he purchased thousands of Bitcoin in 2013 when the price was approximately $700 per coin.
Durov clarified that these personal cryptocurrency holdings, not funds from Telegram, have allowed him to finance his expenses. He emphasized that Telegram itself has been a "money-losing operation for me personally," separating his wealth from the company's finances.
Key Takeaways
- Pavel Durov invested millions of dollars into Bitcoin in 2013, buying thousands of coins at around $700 each.
- He states this early investment is what funds his lifestyle, including private travel, not revenue from Telegram.
- Durov remains a firm believer in Bitcoin's long-term value, predicting it could one day reach $1 million per coin.
- He also discussed the history of the Telegram Open Network (TON), explaining why Telegram abandoned the project due to regulatory pressure.
An Early Bet on Digital Currency
Durov explained that his decision to invest in Bitcoin stemmed from a fundamental belief in the cryptocurrency's potential from its early days. In 2013, he invested what he described as a "couple of million" dollars to acquire his holdings.
"I was a big believer in Bitcoin since more or less the start of it," Durov said on the podcast. He noted that he bought at a price of around $700, which was considered a local peak at the time.
Following his purchase, the price of Bitcoin entered a bear market, dropping below $200. Durov recalled facing criticism for his investment but remained steadfast in his conviction.
"I’m not going to sell it. I believe in this thing. I think this is the way money should work," he stated, reflecting on his mindset during the price downturn.
Investment Details
- Year of Purchase: 2013
- Price per Bitcoin: ~$700
- Initial Investment: Described as a "couple of million" dollars.
He highlighted the core attributes of Bitcoin that appealed to him, particularly its resistance to censorship and seizure. "Nobody can confiscate your Bitcoin from you. Nobody can censor you for political reasons," he added.
Funding a Lifestyle Independent of Telegram
A key point Durov made was the distinction between his personal wealth and Telegram's operational finances. He addressed speculation that his lifestyle is funded by the popular messaging app he founded.
"Some people think if I’m able to rent nice locations or fly private, it’s because I somehow extract money from Telegram," he explained. "Like I said, Telegram is a money-losing operation for me personally. Bitcoin is something that allowed me to stay afloat."
This statement positions his cryptocurrency investment as the financial engine that has supported him for years, allowing him to continue developing Telegram without needing to draw a salary or profits from the company.
Long-Term Outlook on Bitcoin and Fiat Currency
Durov expressed a bullish long-term view on Bitcoin, contrasting its fixed supply with the inflationary nature of government-issued fiat currencies. He predicted that continuous money printing by governments would ultimately drive Bitcoin's value significantly higher.
"It will come to a point when Bitcoin is worth $1 million," he projected, attributing this to governments "printing money like no tomorrow."
He emphasized the digital asset's scarcity and predictable issuance schedule as its core strengths. "Nobody’s printing Bitcoin," he said, noting it has a predictable, capped supply. "Bitcoin is here to stay. All the fiat currencies remain to be seen."
The Telegram Open Network (TON)
During the conversation, Durov also provided background on the Telegram Open Network, a blockchain project his company developed between 2018 and 2019. The initiative aimed to create a scalable blockchain integrated directly into the messaging service.
The Story of the TON Blockchain
Durov explained that the motivation behind creating TON was the perceived limitations of existing blockchains like Bitcoin and Ethereum. According to him, these networks were "not scalable enough to cope with the load that our hundreds of millions of users would create."
The key technological innovation of TON was its use of "shardchains," a design intended to allow for inherent scalability and the processing of a high volume of transactions.
Despite successfully developing the technology, Telegram was ultimately forced to abandon the project. Durov cited regulatory restrictions in the United States as the reason for halting the launch, which prevented the company from moving forward with its plans.
TON's Evolution After Telegram
Although Telegram officially stepped away, the project was continued by open-source developers and is now known as The Open Network. This network has since become deeply integrated within the Telegram ecosystem, particularly for applications involving non-fungible tokens (NFTs).
Durov claimed that TON has emerged as a major player in the NFT space. "TON has become, I think, the largest or the second largest blockchain in terms of daily NFT trading volumes," he said.
The network's native token, Toncoin (TON), experienced significant price movement, reaching an all-time high of $8.25 in mid-2024. However, according to market data, the token has since corrected, falling more than 67% from that peak.
