Daily Crypto News

Cryptocurrency doesn’t add to society; I don’t own any

  • Bill Gates isn’t impressed by cryptocurrency and says it isn’t adding to society.
  • Gates also warned those with less affluence as Elon musk to desist from investing in crypto.

According to Bill Gates, he can’t invest in anything that doesn’t have a valuable output, and crypto is one of such things that doesn’t fit his valuable output narrative.

Microsoft co-founder and former richest person in the world, Bill Gates, has disclosed that he doesn’t have a crypto investment portfolio because digital assets don’t contribute to society.

Cryptos add no value to the society – Gates

Gates reiterated his stance about cryptos during Thursday’s Reddit Ask Me Anything session. A Reddit user asked Gates to share his insights on crypto investments during the session.

Gates responded by saying, “I don’t own any…I prefer to invest in anything with valuable output. Any firm’s value depends on the kind of products they create. If a company creates a great product, it is one of high value. The reverse is also true.”

In contrast, a crypto’s value is determined by another person’s perception of such crypto and the amount he is willing to pay for such crypto. Hence, cryptos aren’t like other investment instruments that add value to the society.

Gates’s criticism of the crypto market follows the general downturn of the market in recent times. BTC’s price now trades at $29,488, according to the latest Coinmarketcap data. Many experts are even predicting that it would still trade lower.

Gates has never been a crypto advocate from time. During the crypto boom, when nearly everyone was getting in on the action, Gates advised that anyone investing in crypto must be as rich as SpaceX founder and richest man worldwide, Elon Musk.

Gates warns crypto investors

When Bloomberg interviewed Gates last year, he said, “I think many of those investing in crypto are doing so because of the buzz surrounding it and not that they have as much money to spare. Hence, I’m not bullish about BTC or any crypto. My general advice for anyone is to be cautious about their crypto purchase unless they have more money than Elon musk.”

The former richest person globally also expressed concern about the adverse effect of crypto on the environment. The Cambridge Center For Alternative Finance data indicates that BTC consumes nearly 110 terawatt-hours annually. This amount translates to about 0.55% of the world’s electricity consumption.

This amount is also equivalent to the total energy consumption of small nations such as Sweden or Malaysia. A 2021 study by the new york times also indicated that crypto mining is responsible for 5 percent of the total electricity consumed worldwide.

The Microsoft co-founder isn’t the only traditional financial investor who is a heavy critic of digital currencies. Famous US stockbroker, Peter Schiff, has also been a huge critic of the crypto market, especially during the bear season.

In his latest remarks about the leading digital asset, Schiff remarked that “the BTC price action is a trap trying to lure in many more unsuspecting investors before embarking on another leg down.”

 


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