Not only is Bill Gates known for his title as the richest person in the world, he is also a familiar face in technology. In fact, he is known for providing technologies that we all enjoy today. But if you will ask him about cryptocurrencies, you will be surprised that he is actually not a fan of digital currencies.
During a Q and A session with Gates on Reddit, he mentioned that he wasn’t a fan of beer and cryptocurrencies as well.
Gates discussed that one of the reasons why cryptocurrencies are so popular today is because of the fact that you can use it anonymously. And also, he believes that it is widely used by criminals in order to have an easier time to perform their activities.
He said that “The main feature of cryptocurrencies is their anonymity. I don’t think this is a good thing”. He also added that “The government’s ability to find money laundering and tax evasion and terrorist funding is a good thing”.
Same Reasons Why Countries Tightened Regulations?
If you will look at the countries that have adjusted their regulations, these are the same reasons why regulators decided to control crypto activities within their territory. South Korea and France are among the countries that have justified additional regulatory changes on crypto activities for the same reasons that Bill Gates is worried about.
In fact, Gates even mentioned that cryptocurrencies could even be used in order to buy illegal drugs. He mentioned that “cryptocurrencies are used for buying fentanyl and other drugs, so it is a rare technology that has caused deaths in a fairly direct way”.
One user mentioned that though cash can also be used for illicit activities, Gates answered that cryptocurrencies stand out mainly because it is easier to use. “Yes—anonymous cash is used for these kinds of things, but you have to be physically present to transfer it, which makes things like kidnapping payments more difficult”.
Other Experts That Have Negative Opinion on Crypto
Warren Buffet has the same opinion on cryptocurrencies. He said that “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending”. However, he mentioned that he still doesn’t know when this will happen. The popular investor Jack Bogle mentioned that you should “avoid Bitcoin like a plague”.
However, there are also some prominent billionaires and businessmen who are into Bitcoin and cryptocurrencies. You have Mark Cuban who mentioned that once you have built your emergency fund, then it is ok to invest up to 10% of your savings on crypto and other high-risk ventures. However, he added that you should consider that you have already lost your money once you have tried investing in Bitcoin, Ethereum, and other highly volatile cryptocurrencies.
Should you take the advice of Bill Gates? Should investors really take a closer look at cryptocurrencies especially those with an expectation to get rich fast from profits that they can generate from crypto trading? If you will read between the lines, it only means that you shouldn’t get involved in cryptocurrencies if you don’t have a high risk tolerance for investment.