Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The Microsoft founder thinks anyone with less money than the world's richest man should âwatch outâ when it comes to Bitcoin.
Microsoft founder Bill Gates has issued a warning to would-be Bitcoin (BTC) buyers looking to follow Elon Muskâs investment strategy. Speaking to Bloombergâs Emily Chang, Gates suggested Musk had access to sophisticated trade management techniques that the average investor isnât privy to.
When asked about the susceptibility of Bitcoin to tumble in price in reaction to a mere tweet â undoubtedly a reference to Muskâs own social media posts â Gates said Musk was probably insulated from such market crashes:
âElon has tons of money and heâs very sophisticated so, you know, I donât worry that his Bitcoin would randomly go up or down.â
On Tuesday, a little over two weeks since Teslaâs $1.5 billion acquisition of Bitcoin was announced, the price of Bitcoin fell 20%, from $58,258 to $46,624. At the same time, almost $400 billion was wiped off the global market cryptocurrency market capitalization.
Interestingly enough, the crash occurred just hours after Musk himself expressed the opinion that the then-current prices of Bitcoin and Ether (ETH) were âhigh.â Whether this was a criticism or an attempt to deflect heat from a possible investigation into Muskâs influence on crypto prices, the entire market plunged in the aftermath.
Gates said it would be a mistake for the average investor to blindly follow the mania of optimism surrounding Muskâs market moves, telling those who arenât billionaires to âwatch out.â He said:
âI do think people get drawn into these manias who may not have as much money to spare. So, Iâm not bullish on Bitcoin, and my general thought would be: If you have less money than Elon, you should probably watch out.â
The Microsoft founder raised the point of Bitcoinâs energy consumption, suggesting that the cryptocurrency didnât return much in the way of output.
âThere are things we invest in in society which produce output. Bitcoin happens to use a lot of energy. It happens to promote anonymous transactions â theyâre not reversible transactions,â said Gates.
According to Gates, digital currencies arenât necessarily a bad thing; he just thinks they should be transparent, reversible and, essentially, centralized. Gates went on to describe some of the work carried out using digital currencies since the start of the COVID-19 pandemic, noting that the Gates Foundation had used the technology to enable governments to distribute relief funds to their citizens.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.