The founder of Microsoft, Bill Gates has issued a warning to potential buyers of Bitcoin (BTC) who want to follow Elon Musk’s investment strategy. Speaking to Emily Chang of Bloomberg, Gates suggested that Musk has access to sophisticated business management techniques that the average investor is unaware of.
When asked about Bitcoin’s susceptibility to falling in price in reaction to a simple tweet (no doubt a reference to Elon Musk’s own social media posts), Gates He said that Elon Musk was likely insulated from such market downturns:
“Elon has tons of money and he’s very sophisticated so, you know, I’m not worried about his Bitcoin going up or down randomly.”
On February 23, just over two weeks after it was announced the acquisition of Bitcoin by Tesla for $ 1.5 billion, the price of Bitcoin fell 20%: from $ 58,858 to $ 46,624. At the same time, nearly $ 400 billion of the global cryptocurrency market capitalization vanished.
Interestingly, the crash came just hours after Musk himself voiced his opinion that current Bitcoin and Ether (ETH) prices were “high.”. Whether it was a criticism or an attempt to divert attention from a possible investigation into Musk’s influence on cryptocurrency prices, the entire market crashed afterward.
Gates said it would be wrong for the average investor to blindly follow the mania for optimism surrounding Musk’s market movements, recommending non-billionaires to “be careful.” He said:
“I think people get carried away by these manias, who may not have so much money to spare. So I’m not bullish on Bitcoin, and my general thinking would be: if you have less money than Elon, you should probably be careful. “
Microsoft founder raised the issue of Bitcoin’s power consumption, suggesting that the cryptocurrency doesn’t produce much.
“There are things that we invest in in society that produce results. Bitcoin consumes a lot of energy. It turns out that it promotes anonymous transactions – they are not reversible transactions.“Gates said.
According to Gates, digital currencies aren’t necessarily bad, he just thinks they should be transparent, reversible, and essentially centralized.. Gates went on to describe some of the work done with digital currencies since the beginning of the COVID-19 pandemic, noting that the Gates Foundation had used the technology to allow governments to distribute relief funds to their citizens.
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