Microsoft founder Bill Gates has issued a warning to future Bitcoin (BTC) buyers who want to pursue Elon Musk’s investment strategy. Speaking with Emily Chang from Bloomberg, Gates noted that Musk has access to complex trade management techniques that the average investor is not familiar with.
When asked whether Bitcoin is vulnerable to price drops in response to a blank tweet (no doubt a reference to Elon Musk’s private social media posts), Gates said that Elon Musk was likely insulated from such market crashes:
“Elon has a lot of money and he’s very sophisticated, so, you know, I’m not worried that his bitcoin might go up or down.”
On February 23, just over two weeks after Tesla announced the purchase of $ 1.5 billion bitcoin, the price of Bitcoin fell 20% from $ 58,258 to $ 46,624. At the same time, the global digital currency market spent nearly $ 400 billion.
Interestingly, the crash came just hours after Musk himself announced his opinion that the prevailing Bitcoin and Ether prices at the time were “high”. Be it criticism or an attempt to distract from a potential investigation into Musk’s influence on cryptocurrencies, the entire market has collapsed.
Gates said it would be a mistake for the average investor to blindly pursue the optimism surrounding Musk’s moves in the market, urging non-billionaires to “pay attention.” He said:
“I think people are drawn to this obsession, who may not have enough money to save. So I’m not optimistic about Bitcoin and my general thought would be if you had less money than Elon, you’d probably be careful.”
The Microsoft founder raised the issue of Bitcoin’s energy consumption, suggesting that the cryptocurrency is doing little to nothing in the production process.
“There are things that we are investing in the community that support production. Bitcoin consumes a lot of energy. This helps boost anonymous transactions – they are not reversible transactions,” Gates said.
Gates said that cryptocurrencies aren’t necessarily a bad thing, he just believes they need to be fundamentally transparent, reversible, and central. Gates went on to describe some of the work done in digital currencies since the start of the COVID-19 pandemic, noting that the Gates Foundation has used technology to enable governments to distribute emergency aid to their citizens.