Microsoft Corp. Co-Founder Bill Gates shared his skeptical views on Bitcoin, distinguishing himself from other tech and celebrity figures who have embraced the cryptocurrency. Gates expressed concern over the volatile nature of Bitcoin, especially how its value could be significantly influenced by social media activity, notably mentioning Tesla Inc. CEO Elon Musk’s posts on X as an example of factors that can sway cryptocurrency prices.
In 2021, Tesla invested $1.5 billion in Bitcoin, causing its price to rise. Tesla sold 10% of its holdings in March 2021 for over $250 million when Bitcoin exceeded $60,000. Despite a 20% drop in Tesla’s stock, the company maintained a significant Bitcoin portfolio. In June 2022, during a market low, Tesla sold about 75% of its holdings to increase cash reserves. This move coincided with Bitcoin’s price plummeting below $20,000. Bitcoin’s value surged by nearly 150% in 2023, leading to speculation about potential missed profits for Tesla, estimated at around $500 million. Coindesk reports that as of 2024, Tesla holds over $387 million worth of Bitcoin.
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In a recently resurfaced YouTube video, Gates emphasized the risks associated with Bitcoin’s volatility, particularly for people who might not have substantial financial resources. “Elon has tons of money, and he’s very sophisticated, so I don’t worry that his Bitcoin will randomly go up or down,” Gates said. “If you have less money than Elon, you should probably watch out.”
This statement underscores Gates’s apprehension toward investing in cryptocurrencies by those who cannot afford significant losses.
The discussion also covered the broader implications and challenges of cryptocurrency, including the concerns related to the lack of regulation and the potential for misuse. Gates highlighted the decentralized nature of cryptocurrencies like Bitcoin and their potential to facilitate anonymous and irreversible transactions. These features, according to Gates, pose risks not only to financial stability but also in terms of enabling illicit activities.
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However, Gates acknowledged the…
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