Microsoft founder Bill Gates made an important statement about bitcoin on May 7th in an interview with CNBC. He stated that bitcoin was a “greater fool” investment. In the “greater fool” investment, one party purchases a commodity without really considering its price and sells it to someone else, who is the greater fool, with a higher price. Therefore, Gates expressed his desire to reduce it if he could.
Commenting on the Squawk Box segment of the Bitcoin network in February, Bill Gates stated that the crypto currencies were cause for direct deaths, but nevertheless did not cut the ties completely with the cryptocurrency.
“If there was an easy way to do it, of course I reduced it.”
Unfortunately, the time period of the Gates remarks can be questioned. While some institutional investors reduce bitcoin by using futures contracts, one of the giant investment banks, Goldman Sachs, announced that not only will it enter the crypto world, but it also wants to give customers a more direct contact with bitcoin and also other currencies.
As it was reported previously, Goldman Sachs senior executive stated that they did not see cryptocurrencies as a “fraud” and that they were understandable even though they were considered as having high risk.
For Gates, cryptocurrency is too risky for long-term investments, both on the part of the client and the institution. He further added: “Bitcoin and ICOs, I believe completely of the crazier, speculative things.”
Gates remarks remind the comments produced by Warren Buffett and Charlie Munger recently.
