Bitcoin, which hit an all-time high of $58,640, traded at $47,078, after recording a 14 per cent dip in price in the last 24 hours. The decline has led to many speculations as to whether Elon Musk, who reintroduced mainstream asset interest, may have affected markets through his tweets.
But, Philanthropist, Bill Gates thinks that while Musk is resistant to market fluctuations, as he has enough resources to handle through Bitcoin’s price swings, someone who is not a billionaire must be more cautious. Gates shared his concern about traders who are easily influenced, probably through social media. In a recent interview with Bloomberg Technology, Bill Gates warned:
“I do think people get drawn into these manias who may not have as much money to spare….if you have less money than Elon, you should probably watch out [for Bitcoin’s volatility]
Elon has tons of money and he’s very sophisticated so, you know, I don’t worry that his Bitcoin would randomly go up or down”
The founder of Microsoft also admitted that he was “not bullish” at Bitcoin at the moment. His bearish view is primarily attributable to the energy usage of the Bitcoin network.
There are things we invest in in society which produce output. Bitcoin happens to use a lot of energy.
In addition, Gates does not favour Bitcoin as it encourages “anonymous transactions” that are “not reversible.” However, Gates believed in other types of digital money and commended the Gates Foundation’s digital money initiative, even though their digital currency does not have “bitcoin visibility.”
“The Gates Foundation does a lot in terms of digital currency, but those are things where you can see who’s making the transaction. So digital money is a good thing.”
Gates said last week that he was “not short of bitcoin” and that he had a balanced view of the commodity.
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