When you amass a net worth of more than $91 billion, it is pretty easy to assume that you know what you are talking about when it comes to money—and that is precisely the case for Bill Gates. During a May 7 interview, Gates stated that if he could, he would bet against Bitcoin—and presumably other cryptocurrencies, due to their lack of tangible worth.
“As an asset class, you’re not producing anything, and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” Gates stated. Adding, “I agree I would short it if there was an easy way to do it.”
Gates spoke confidently about the problems with cryptocurrency, but while his knowledge of traditional finance is undisputed, many called into question how he could speak about cryptocurrency despite having little hands-on experience with it. In fact, he admitted that his only involvement with Bitcoin was receiving some as a gift for his birthday several years ago, which he sold a few years later.
The hype surrounding Bitcoin has risen and fallen along with its worth, which has led many to question just how solid of an investment it is. In late 2017, when it was trading above $19 thousand, many jumped on the bandwagon, and since it has dipped to $9,300 this month, some investors are already jumping off.
Unsurprisingly, Gates is a fan of the blockchain technology that supports cryptocurrencies.
Gates’ statements come on the heels of those of fellow billionaire Warren Buffett and his investing partner Charlie Munger, in which they called Bitcoin “rat poison” and “stupid and immoral.” These comments, among others, were made at the annual shareholders meeting for Berkshire Hathaway; Gates serves on the board.