Bill Gates terms Cryptocurrency as ‘collateral damage’ over the long period
It is clear to say that the co-founder of the World’s biggest tech company, Bill Gates is definitely not a fan of cryptocurrency.
At one of the most recent “Ask Me Anything” discussion on Reddit, the Microsoft co-founder and billionaire expressed his concerns over the main feature of cryptocurrencies which is its ability to provide anonymity to its buyers, Gates also revealed that it can actually cause more damage rather than prosperity.
He also issues a statement saying “The government’s potential to discover money laundering, tax evasions, and terrorist funding is, in fact, helping the society tremendously”, he further wrote. “Currently, the anonymity factor provided by cryptocurrencies are being misused for harmful purposes like buying fentanyl and other drugs, so it is a rare technology that has caused deaths in a fairly direct way.”
However a Reddit user was quick to point out that even plain cash has been used for so long for illicit activities, Gates was quick to comment and answered by saying that crypto is an exception because it is easier to use and the buyer nor the seller can be traced. He further explained by saying “Yes — no doubt anonymous cash is used for such malpractices, but you have to be physically present to transfer it, which makes things like kidnapping payments more difficult,”
Gates also didn’t hesitate while issuing a clear warning stating that the hype of speculation surrounding cryptocurrencies is “super risky for those seeking long-term investments.”
It is not the first time a big name has spoken out against the dicey chattels. His close friend, who so happens to be one famous Warren Buffett also forecasts the negative outcome. The chairman and CEO of Berkshire Hathaway stated, “In terms of cryptocurrencies, generally, I can say with almost complete assurance that they will eventually end in a bad way”
Warren Buffet, in one interview for CNBC’s “Squawk Box” which happened in Omaha, Nebraska stated that he couldn’t say for sure how or when this bubble will burst, but “If I could buy a five-year put on every one of the cryptocurrencies, I’d gladly oblige, but I would never short a dime’s worth.”
Legendary investor Jack Bogle also agreed with a rather bold comment to this by stating. “Avoid bitcoin like the plague. Did I make myself clear?”. This was the response of the Vanguard founder to an audience question during a Council on Foreign Relations event.
However other investors haven’t been so harsh to this idea. With Billionaire Mark Cuban, also the owner of Dallas Mavericks and with Shark Tank fame reveals that, once you’ve built up an emergency fund, it’s fine to invest up to 10 percent of your savings in high-risk ventures such as bitcoin and Ethereum “if you’re truly an opportunist.” However, it is a high risk and you’ve got to see it as a scenario where you’ve already lost your money,” he told Vanity Fair, further adding that it’s quite a long shot kind of like throwing in “the Hail Mary.”