Bill Gates, Microsoft founder comments about bitcoin on May 7th. He said that Bitcoin and other cryptocurrencies are “kind of a pure greater fool theory type of investment”.
Bill Gates said on CNBC’s “Squawk Box”,
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment”.
He adds, I agree I would bet it if there was an easy way to do it.
Likewise, Charlie Munger, Warren Buffett’s business partner, calls bitcoin a worthless artificial gold. He said at Berkshire Hathaway Inc.’s annual shareholder meeting.
When Gates was asked that whether if he owns any cryptocurrencies, he said that he got Bitcoin as his birthday gift and he sold it few years back. He continues telling that, “Bitcoin and ICOs, I believe completely they’re some of the crazier, speculative things”.
The tech entrepreneur told CNBC that, “As an asset class, there is nothing to expect it to go up. It’s like a pure ‘greater fool theory’ investment type”. Although many critics of the crypto price surges, Gates said underlying blockchain technology, is a ‘good and positive thing’ for sharing databases and transaction verification.
Remarkably, there will no third-party interference as Blockchain creates a secured, permanent record of a transactions. Moreover, Bitcoin is the first blockchain application of its technology.
Further, the investors can short Bitcoin using futures contracts, Goldman Sachs in the institutional year. However, Sachs has confirmed that seek to offer clients more direct exposure to Bitcoin. According to Goldman Sachs, now Bitcoin is not a fraud but it is ‘too risky’, it is not something it doesn’t understand”.
Comparatively, Bill gates believes that bitcoin assets seems too risky only for long term commitments. Gates comments were highlighted by Warren Buffett and Charlie Munger comparing Bitcoin investment to “trading turds”:
“Someone else is trading turds and you decide I can’t be left out”.