Microsoft founder Bill Gates has warned would-be Bitcoin buyers looking to follow Elon Musk’s investment strategy. Speaking to Bloomberg’s Emily Chang, Gates suggested Musk had access to sophisticated trade management techniques that the average investor isn’t privy to. When asked about the susceptibility of Bitcoin to tumble in price in reaction to a mere tweet, Gates said Elon Musk was probably insulated from such market crashes.
— Bloomberg Technology (@technology) February 23, 2021
Bitcoin drops after Elon musk tweeted BTC and ETH price “seem high.”
Bill Gates said, “Elon has tons of money, and he’s very sophisticated, so, you know, I don’t worry that his Bitcoin would randomly go up or down.” Earlier today, a little over two weeks since Tesla’s $1.5 billion acquisition of Bitcoin was announced, the price of Bitcoin fell 20% — from $58,258 to $46,624. At the same time, almost $400 billion was wiped off the global market cryptocurrency market cap. Coincidently, the crash in prices occurred just hours after Musk himself expressed the opinion that Bitcoin and Ether’s then-current prices were “high.”
Bill Gates is not bullish on bitcoin.
Gates said it would be a mistake for the average investor to blindly follow the mania of optimism surrounding Musk’s market moves, telling those who aren’t billionaires to “watch out.” He said: “I do think people get drawn into these manias who may not have as much money to spare. So I’m not bullish on Bitcoin, and my general thought would be: if you have less money than Elon Musk, you should probably watch out.” The Microsoft founder also raised the point of Bitcoin’s energy consumption, suggesting that the cryptocurrency didn’t return much in the way of output.