Why Bill Gates Isn't Falling For the Crypto Hype
Cryptocurrencies and NFTs seem to be the only thing investors have been talking about for the last two years. Bitcoin might be down right now, but the cryptocurrency reached unfathomable heights during the pandemic. Despite the hype, or maybe because of it, Bill Gates is sure that this is one investing trend he will not be jumping on.
The conservative investor is definitely not bullish on Bitcoin. In fact, Gates referred to the cryptocurrency world as “100 percent based on greater fool theory” during a TechCrunch conference earlier this week.
According to Gates, crypto like BitCoin exists only because investors think they can create value from worthless digital assets if other investors bid higher and higher. Gates’ criticism of crypto stems from the fact crypto is ultimately worthless (at least in his eyes) and does not do anything to improve the world.
A traditional investor, Bill Gates said. "I'm used to asset classes, like a farm where they have output, or like a company where they make product.”
As of June 16, 2022, Bitcoin is crashing, down over 67 percent from its value in late 2021. As fickle as the crypto market is, Gates is not completely opposed to it. He has no issues with fellow billionaire Elon Musk taking a strong interest in Bitcoin, but when it comes to regular civilians being enticed to invest in crypto, Gates draws the line.
"I do think people get bought into these manias, who may not have as much money to spare," Gates said.
The crypto market is almost at its lowest, meaning it might be the perfect time to buy cryptocurrency assets, but based on Bill Gates’ advice, it might also mean the worst. It’s up to you if you’re willing to take the risk of crypto trading or heed Gates’ advice and pass the opportunity.