Bill Gates warns Bitcoin buyers about cryptocurrency volatility
The Microsoft founder believes people with less money than Elon Musk should be wary of Bitcoin.
Microsoft founder Bill Gates has issued a warning to prospective Bitcoin (BTC) buyers who want to follow Elon Musk’s investment strategy. Speaking to Bloomberg’s Emily Chang, Gates explained that Musk has access to complex trade management techniques that the average Bitcoin Supersplit investor does not have at their disposal.
In response to the statement that bitcoin could collapse in response to a mere tweet (no doubt a reference to Elon Musk’s social media posts), Gates stated Elon Musk would likely be protected from such market collapses:
„Elon has tons of money and is very sophisticated, so I’m not worried about his Bitcoin just going up or down.“
On 23 February, just over two weeks after Tesla announced its 1.5 billion investment in Bitcoin, Bitcoin’s price fell 20 per cent from $58,258 to $46,624. At the same time, the total market capitalisation of all cryptocurrencies lost almost 400 billion US dollars.
Interestingly, the slump occurred just a few hours after Musk himself had said that the then-current prices of Bitcoin and Ether (ETH) were „high“. Whether this was meant as criticism or merely an attempt to prevent a possible investigation into Musk’s influence on crypto prices: The entire market plummeted as a result.
Gates said it would be a mistake for the average investor to blindly follow the manic optimism surrounding Musk’s market moves.
He advised people who are not billionaires to „pay attention“
„I think people get carried away with this mania who may not have that kind of money at their disposal. So I’m not optimistic about Bitcoin. In general, I think if you have less money than Elon, you should pay attention.“
The Microsoft founder addressed Bitcoin’s energy consumption, suggesting that the cryptocurrency does not yield much in terms of power.
„There are things that we invest in in society that provide power. Bitcoin happens to consume a lot of power in the process. It happens to encourage anonymous transactions that are not reversible transactions,“ Gates said.
According to Gates, digital currencies are not necessarily a bad thing. But he believes they should be transparent, reversible and essentially centralised. Gates described some of the things that have been done with digital currencies since the COVID-19 pandemic began. He noted that the Gates Foundation had used the technology to enable governments to distribute aid money to their citizens.