Bill Gates: Cryptocurrency is Useless, but the Industry Sees Hope in Trump
Bill Gates, the co-founder of Microsoft, has taken a strong stance against cryptocurrency, labeling it as useless. In an interview with The New York Times, Gates criticized digital currencies, suggesting that even intelligent individuals have been deceived by them.
The Contradictory Landscape: Bitcoin’s Recent Highs
Despite Gates’ negative assessment, the Bitcoin market has experienced record-high prices recently. The cryptocurrency community is optimistic, largely due to President Donald Trump‘s presence in the White House.
Bill Gates has delivered a withering assessment on cryptocurrency, saying that it is useless
President Trump has announced policies favoring digital currencies. Additionally, both he and his wife Melania launched their own meme coins, adding to the enthusiasm among investors.
Market Volatility: The Impact of Trump’s Trade War Prospects
However, the excitement was short-lived. The anticipation of a trade war between the US and its trading partners led to a drop in cryptocurrency prices. Some digital assets saw values fall by more than 10 percent, as reported by AP News.
Despite the initial decline, the market quickly recovered. By the end of Monday, Bitcoin rebounded above $100,000, showcasing its volatile nature.
The cryptocurrency industry as a whole has hailed the arrival of Donald Trump in the White House as a positive moment
Gates’ Critique: Why He Believes Cryptocurrency is Useless
In a separate interview with Bloomberg, Gates elaborated on his thoughts. He acknowledged Elon Musk‘s Tesla holding substantial Bitcoin, saying, “Elon has tons of money and he’s very sophisticated, so I don’t worry that his Bitcoin will randomly go up or down.”
However, Gates warned, “I do think that people get bought into these manias who maybe don’t have as much money to spare. So, I’m not bullish on Bitcoin. My general thought would be that if you have less money than Elon, then you should probably watch out.”
Gates also pointed out that Bitcoin lacks productive investment benefits. “Bitcoin happens to use a lot of energy, it promotes anonymous transactions, and those are not reversible transactions,” he stated.
This contrasts with the approach of the Gates Foundation, which invests in digital currency with transparency, ensuring transactions are traceable.
Fellow Critics: Warren Buffett’s Perspective
Warren Buffett is known to be a vocal critic of cryptocurrency, calling it a ‘rat poison,’ and a ‘gambling token’
Gates’ statements align with other tech giants. Warren Buffett, for instance, has long been a vocal critic, dubbing cryptocurrency ‘rat poison,’ ‘gambling token,’ and predicting its eventual downfall.
The Paradox of Warren Buffett’s Investment in Nubank
Interestingly, despite his negative stance on Bitcoin, Warren Buffett is invested in Brazil-based digital banking company Nu Holdings, valued at over $100 billion.
Nubank operates across Brazil, Colombia, and Mexico, offering cryptocurrency trading and its own platform, Nucripto, which saw over a million users in its first month.
Berkshire Hathaway initially invested $500 million in Nubank in 2021. As of the third quarter of 2024, Buffett holds over 86 million shares worth approximately $1.179 billion, showcasing a substantial profit.
Conclusion: The Future of Cryptocurrency
While tech giants like Bill Gates and Warren Buffett remain skeptical, the cryptocurrency market continues to evolve. The entry of President Donald Trump and his policies, as well as the launches of meme coins by him and his wife, have brought fresh optimism to the industry.
The volatile nature of cryptocurrency, evident in its market fluctuations, poses challenges for both investors and critics alike. As these developments unfold, only time will tell the true fate of digital currencies.
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