“If you have less money than Elon, be careful”


Many celebrities and tech icons have jumped on the bitcoin bandwagon. Don’t count Bill Gates among them.

In an interview surfaced As of February 2021, Microsoft’s billionaire co-founder told Bloomberg Technology that he was wary of the bitcoin frenzy, not least because the value of the cryptocurrency could be influenced by something so simple. than a tweet from Tesla CEO Elon Musk.

“Elon has tons of money and he’s very sophisticated, so I’m not worried about his Bitcoin going up or down randomly,” Gates said. “I think people are being driven into these fads that maybe don’t have that much money to spare, so I’m not bullish on Bitcoin.”

He added: “If you have less money than Elon, you should probably be careful.”

Musk — the richest person in the world, with a net worth of $233 billion, according to Forbes — is notably a Bitcoin fan, tweeting about it as recently as Wednesday morning. But Gates said his fellow tech billionaire was just one example of why he was discouraged by Bitcoin’s everyday use.

Specifically, Gates said, he is primarily concerned about the lack of regulation around cryptocurrency. He highlighted two of the main risks associated with Bitcoin and other forms of cryptocurrency: they are decentralized and they can be very volatile.

“[Bitcoin] happens to promote anonymous transactions,” Gates said. “These are not reversible transactions.

Gates said the Bill and Melinda Gates Foundation “does a lot in terms of digital currency,” but only when “you can see who is doing the transaction.” He said “digital money is a good thing”, especially when it comes to funding poorer countries and “distributing money to their citizens in a very, very efficient way”.

The good news for Gates is that regulation could be coming. On Wednesday, President Joe Biden signed an executive order encouraging federal agencies like the US Treasury to develop new crypto-related policy recommendations — taking into account consumer protections, financial stability, illicit activities, American competitiveness, financial inclusion and responsible innovation.

These are important areas: crypto experts often warn that altcoins, in their current state, pose a high risk of fraud – and that they can gain and lose value very quickly, making them deeply unreliable in as investments.

“Be very careful how much you allocate and understand what you tolerate,” Douglas Boneparth, certified financial planner and president of Bone Fide Wealth, told CNBC Make It last year. “Because if 80% of your net worth is tied to bitcoin and it goes down 30%, that’s ballpark.”

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