Bill Gates Explains Why He Doesn’t Own Any Cryptocurrency (2024)

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Bill Gates Explains Why He Doesn’t Own Any Cryptocurrency? ›

"I don't own any," Gates wrote. "I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments."

Gates highlighted the decentralized nature of cryptocurrencies like Bitcoin and their potential to facilitate anonymous and irreversible transactions. These features, according to Gates, pose risks not only to financial stability but also in terms of enabling illicit activities.

It has no intrinsic value and is not backed by anything. Bitcoin devotees will tell you that, like gold, its value comes from its scarcity—Bitcoin's computer algorithm mandates a fixed cap of 21 million digital coins (nearly 19 million have been created so far). But scarcity by itself can hardly be a source of value.

In an interview this week on X Spaces with Ark Invest CEO Cathie Wood, Musk said payments could be added to X, formerly Twitter, by mid-2024, but that his interest in crypto was fading. “I don't spend a lot of time thinking about cryptocurrency—hardly any at all,” he said.

Among other things, Bitcoin may enable the citizens of a country to undermine government authority by circumventing capital controls imposed by it. It also facilitates nefarious activities by helping criminals evade detection.

According to Benzinga, Buffett believes that cryptocurrencies aren't a viable or valuable investment.

Are There Any Bitcoin Billioniares? There are 16 cryptocurrency billionaires in Forbes' ranking of billionaires. Sam Bankman-Fried is still on the list, but Forbes lists the ex-CEO of FTX with no wealth. 16 There are likely many more billionaires who own crypto, but most do not publicize their holdings.

Products, services, wages, and salaries are not valued in bitcoin but in fiat currency. Bitcoin must be converted to a government-backed currency to be used, even in countries where it is recognized as legal tender. The argument here is that because Bitcoin is convertible, it doesn't have any underlying value.

Key Takeaways. Bitcoin, the cryptocurrency, is most likely to remain popular with speculators over the next decade. Bitcoin, the blockchain, will probably continue to be developed to address long-standing issues like scalability and security.

A cryptocurrency can lose value when the supply of the cryptocurrency outpaces demand for that cryptocurrency.

Which cryptocurrency is backed by Elon Musk? ›

“Depending on Elon's actions and vision for things like sending Doge to the moon (literally) and accepting Doge for Tesla products — with Elon's backing, Dogecoin's price is likely to remain relevant and a strong performer in the crypto industry.”

Bitcoin was created by an anonymous person or group using the pseudonym Satoshi Nakamoto. Nakamoto published a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," outlining the concept of a decentralized digital currency.

This means that Tesla missed out on an extra $500 million in profit had it not sold its Bitcoin in March 2021 and June 2022. Tesla still holds 9,720 Bitcoins, worth around $400 million at current prices. It will be interesting to see whether it holds on to the tokens in 2024 or sells.

Under really extreme circ*mstances, there are few scenarios that could spell the end of Bitcoin as we know it. For instance, a massive global power outage shutting down all communications and the internet around the globe could prevent nodes in the network from contacting each other, causing the system to fail.

Criminal Forfeiture

A warrant is not the only way for a law enforcement agency to seize bitcoin held by another individual or entity. Bitcoin can also be taken by the government through a process called forfeiture. Forfeiture is the permanent loss of that bitcoin by way of court order or judgment.

Bitcoin is not controlled by any single group or person. Instead, it is governed by multiple stakeholders — including developers, miners, and users. Developers write the code that makes Bitcoin run; miners validate transactions; and users put the software to work by trading, transacting, holding, and more.

A purported $25 million giveaway of a token called GBTC – letters better associated with the $13 billion Grayscale Bitcoin Trust – is an obvious fake. A purported $25 million crypto giveaway on the social-media platform formerly known as Twitter is – no surprise, really – indeed too good to be true.

“I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments,” he said.

He does not own any crypto.