Speaking at the popular social media platform Reddit's "Ask Me Anything" event recently, Bill Gates explained his thoughts on Bitcoin (BTC) and cryptocurrencies. Gates, who is the fourth richest person in the world with a net worth of $125 billion, said that he believes investment in cryptocurrencies does not contribute to society like other investments.
“I have not invested in Bitcoin or any other cryptocurrency. Because I like to invest in assets that have a valuable function. The value of companies depends on how they make great products. But the value of Crypto depends only on how much someone else will pay for that crypto. It doesn't make a contribution to society like a valuable investment."
The famous billionaire expressed some doubts about Bitcoin and cryptocurrencies in an interview with Bloomberg in February. Expressing that he was worried that ordinary people would fall into the Bitcoin frenzy, Gates said:
"I don't have Bitcoin. Bitcoin can rise or fall just because of a craze or whatever. I don't know any way to predict how it will go. If you have less money than Tesla CEO Elon Musk, you have to be careful."
Goldman Sachs Announced the Impact of the Fall in Bitcoin and Cryptocurrency Markets on the US Economy!
In a research report, Goldman Sachs said that the impact of the recent decline in Bitcoin and the cryptocurrency market on total US spending will likely be very small. The report also noted that there was a very limited impact for an increase in labor force participation due to the declines.
The ratio of cryptocurrency wealth held by investors in other countries is also an important consideration, the bank said. Goldman estimates that U.S. households have around a third of the $1.3 trillion market cap of the global crypto market. This means that the recent decline in crypto market capitalization is very small compared to the net worth of US households, which stood at $150 trillion in the fourth quarter of 2021.
Tighter financial conditions will likely cause a rapid slowdown in growth and spending this year, but any incremental impact from the recent drop in crypto prices will likely be “low,” the research said.