It’s not surprising that many people want to hear what Bill Gates says about Bitcoin. Gates is not only one of the most wealthy men in the world; but also a businessman whose words of advice and intellect matter to many people.
The man who was one of the first tech CEOs that recognized the potential of the internet is neutral to Bitcoin and, even worse, critical. Gates is worried about the impact of cryptocurrency on the environment and fears that investors may lose their investment. Although his critical views don’t negatively affect the BTC to INR value, it is still worth knowing what he thinks of Bitcoin.
Bill Gates’ Thoughts on Bitcoin
CNBC interviewed Bill Gates in 2018. Gates stated that he was given Bitcoin as a birthday gift but sold it several years later. He said it was a pure “greater fool theory” type of investment. This is because Bitcoin’s only value is what you can sell it for. It doesn’t have any intrinsic value.
His views had slightly changed by February 2021. He stated that he doesn’t own Bitcoin and is not short of Bitcoin. “So I have a neutral viewpoint,” he said in an interview. He is still concerned about the impact of Bitcoin mining on the environment. Gates stated that Bitcoin uses more electricity per transaction in a Clubhouse interview later in the year. But so do Dogecoin and other altcoins. It does influence the Dogecoin to INR figures, but not substantially.
Concerns expressed by the philanthropist about Bitcoin’s energy consumption were justified. Digiconomist, which tracks crypto’s environmental impact, found that Bitcoin’s carbon footprint was about the same as the Czech Republic. Its annual energy use is approximately the same as in Thailand.
Gates is also concerned about the potential for individual investors to be hurt. He spoke with Bloomberg about Elon Musk’s passion for crypto. “Elon is rich and very intelligent, so I don’t worry about whether his Bitcoin will go up or down randomly.” Gates is concerned that those who don’t have the financial resources to cope with volatility might struggle. He stated that his general opinion was that people with less money than Elon should be cautious.
Gates does not view the entire industry negatively. Gates claims that the Gates Foundation quickly used digital currency to get money to people in need during the pandemic. He said that digital money was a good thing. Gates supports a more attributed approach to digital assets. Gates believes that low-cost transactions can be used to benefit without being involved in money laundering and financing terrorism.
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Bitcoin: Should You Invest?
Bill Gates raises legitimate concerns that all crypto investors should be aware. First, it’s almost impossible to purchase a green Bitcoin if you are an environmentally-conscious investor. You don’t know if the Bitcoin you purchase (or fraction thereof) was powered by coal- or renewable electricity when you buy it.
However, other cryptocurrencies use a different method to verify transactions and don’t consume nearly as much energy. Mining Bitcoin isn’t environmentally friendly, even though some companies are mitigating any damage by using renewables.
It is also true that large investors such as Elon Musk, who are billionaires, are less likely to suffer from significant price drops. Although cryptocurrency investments can yield great rewards, they can also prove to be very risky. You should only invest or put in money that you can afford to lose in Bitcoin.
It’s important to also make sure you are focusing on your other financial goals. Crypto investments shouldn’t be prioritized over paying off debt or building your retirement savings. You should make sure you have an emergency fund that covers three to six months of your living expenses. This will ensure that you don’t have to sell any crypto investments or other investments in case of an unexpected financial emergency.
The Final Saying
The final decision about whether to invest in cryptocurrency is based on your financial situation, investment goals, your beliefs about crypto’s potential long-term performance, and your willingness to take some risk. The right thing for any one person may not be the right thing for everyone. Bill Gates, for example, has amassed a substantial fortune and is in a completely different financial position than you and me. So always take your Bitcoin or other crypto buying decisions wisely.