he founder of Microsoft, Bill Gates, said in a live chat on Clubhouse’s social network in February 2021 that he hasn’t invested in Bitcoin. He told the host that he prefers to invest in companies that make products, citing examples such as companies that manufacture the measles and malaria vaccines.
Bill Gates also said that he doesn’t choose investments on the foundation that they’re worth more than others. In an earlier interview with Bloomberg in which he discussed Elon Musk’s Bitcoin acquisitions, he stated that if you had less money than him, you should probably be considerably more careful about investing in cryptocurrencies.
The billionaire said that Elon has plenty of money and is very sophisticated, so he doesn’t have to worry about his Bitcoin investment going up or down. He worries more for people who buy into these chaotic trends and don’t have much money to spare
Gates Would Short Bitcoin If He Could
One of the earliest views of Bitcoin by Gates is that he would bet against it if he could. In a CNBC interview back in May 2018, he mentions that as an asset class, you shouldn’t expect the price of it to go up if you’re not producing anything. Gates says that it’s a fool theory type of investment, but he would short it if there were an easy way to do it.
Any individual can short cryptocurrencies, but taking these bets against digital assets isn’t as easy as it is for more established resources such as corporate shares.
The billionaire has other comments remarking that Bitcoins and ICOs are incredibly speculative things. He also mentioned an instance in which someone gave him some Bitcoin for his birthday but sold it a few years later. Regardless, Gates did add that the blockchain technology Bitcoin is based on has its merits.
This technology removes the necessity of a third-party intermediary such as a bank by creating a permanent and secure transaction record between two parties.
An Innovation That Is Prone to Abusers
In an interview with the Wall Street Journal in February 2021, the interviewer asked Gates what technological innovation the world could do without. He mentioned that the way crypto works allows for some criminal activities and that it would be good to remove that. Gates then quickly remarked that he should have said bioweapons.
The comment implies that cryptocurrencies are subject to abuse by swindlers and sees frequent participation in money-laundering schemes. These are common criticisms of the digital asset ever since it became valuable. Regardless, Gates mentioned he takes a neutral view in an interview that aired on CNBC’s “Squawk Box” because he doesn’t own or short Bitcoin.
He feels that moving money into a digital form is the proper process, and so is getting the transaction costs down. After all, that’s what the Gates Foundation has been doing in developing countries. He doesn’t bother with Bitcoin as its prices are based on whichever the views are at the moment, and he doesn’t have a way to predict what those are.
Gates Is Concerned About the Bitcoin Mining Process
In March 2021, when interested forward-looking investors managed to push the price of a single Bitcoin over $57,000, Bill Gates mentioned that he has concerns regarding the process necessary to produce the digital asset.
The Bitcoin mining process, or its generation using powerful computers to crack mathematical equations, consumes a significant amount of electricity. Bill Gates feels that this practice is accelerating climate change’s effects.
He says that it’s not a good climate deal considering that it uses more electricity per transaction than other methods known to humanity. Gates mentions that he might change how he feels about cryptocurrencies if platforms make an effort to embrace environmentally-friendly practices. Regardless, these climate concerns haven’t even slightly slowed down Bitcoin’s momentum.
Has Bill Gates Traded Bitcoin?
Microsoft founder and philanthropist Bill Gates has not shied away from sharing his thoughts on cryptocurrency Bitcoin. In 2018, Gates shared that as a joke, he had received one Bitcoin. After a few years, he sold the cryptocurrency off.
Gates has shared his concern over the cryptocurrency and the craze behind it. He has openly shared his opinion of Bitcoin and other digital currencies and how many operate on a decentralized network, posing serious security threats to investors.
This notion of cryptocurrencies not being helpful, however, was not always a view Gates had. Earlier, he saw the potential behind the digital currencies but notes that plenty of work still has to be done, from finding a more environmentally sustainable method of mining them to government regulation and legalization.