News
Bill Gates Warns Bitcoin Investors: ‘If You Have Less Money Than Elon, You Should Probably Be Careful’
Co-founder of Microsoft Corp. Bill Gates shared his skeptical views on Bitcoin, setting himself apart from other tech and celebrity figures who have embraced cryptocurrency. Gates expressed concern about the volatile nature of Bitcoin, particularly how its value could be significantly influenced by social media activity, notably mentioning Tesla Inc. CEO Elon Musk’s posts about example of factors that can influence cryptocurrency prices.
In 2021, Tesla invested $1.5 billion in Bitcoin, causing its price to rise. Tesla sold 10% of its holdings in March 2021 for over $250 million when Bitcoin was above $60,000. Despite a 20% drop in Tesla shares, the company retained a large Bitcoin holding. In June 2022, during a market bottom, Tesla sold approximately 75% of its stakes to increase its cash reserves. The move coincided with the Bitcoin price falling below $20,000. Bitcoin’s value surged nearly 150% in 2023, leading to speculation about potential missed profits for Tesla, estimated at around $500 million. Coindesk reports that in 2024, Tesla held over $387 million worth of Bitcoin.
Don’t miss:
In a recently resurfaced Youtube video, Gates highlighted the risks associated with Bitcoin’s volatility, especially for people who do not have substantial financial resources. “Elon has tons of money and he’s very sophisticated, so I don’t worry about his Bitcoin going up or down randomly,” Gates said. “If you have less money than Elon, you should probably be careful.”
This statement highlights Gates’ apprehension about investing in cryptocurrencies by those who cannot afford significant losses.
The discussion also touched on the broader implications and challenges of cryptocurrency, including concerns over a lack of regulation and the risk of misuse. Gates highlighted the decentralized nature of cryptocurrencies like Bitcoin and their potential to facilitate anonymous and irreversible transactions. These characteristics, according to Gates, pose risks not only to financial stability, but also in terms of facilitating illicit activities.
However, Gates acknowledged the potential benefits of digital currencies, particularly where transparency and regulation are involved. He highlighted the work of the Bill & Melinda Gates Foundation in promoting digital currency initiatives that enable transparent transactions. Such efforts, Gates noted, have proven crucial to effectively disbursing funds to people in need, particularly in poorer countries, during the pandemic.
The story continues
Tendency : Did you know StartEngine Private is your portal for investing in venture-backed companies without spending millions?
Gates invests in a wide range of sectors through his personal portfolios and those of his foundations. Its investment strategy emphasizes companies with strong fundamentals and growth potential, and it holds significant stakes in technology, finance and consumer goods.
Its portfolio as of Q3 2023 featured various investments in tech giants like Nvidia Corp., which plays a central role in the artificial intelligence (AI) revolution due to its graphics processing units (GPUs) and traditional sectors with strong growth prospects, such as Waste Management Inc. and Caterpillar Inc.. Waste Management, for example, reported an increase in revenue in its third quarter of 2023, emphasizing continued growth in essential services. Meanwhile, Caterpillar, a leader in the heavy machinery sector, also recorded significant revenue growth, demonstrating Gates’ interest in innovative technologies and fundamental industries.
Strategic movements Gates’ portfolio reflect a balanced approach to investment, combining sectors with high growth potential like AI with stable and essential services. This combination illustrates its broader investment philosophy: a blend of pursuing cutting-edge innovation and supporting well-established companies with a proven track record of success.
Gates’ investment strategy offers a valuable lesson to individual investors: diversification is essential, especially in startups and cutting-edge companies and sustainability. This approach highlights the potential benefits of investing in sectors that not only promise financial returns, but also contribute to technological and environmental advancements.
Read next:
“ACTIVE INVESTORS’ SECRET WEAPON” Boost your stock market game with the #1 “news and everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Get the latest stock analysis from Benzinga?
This item Bill Gates Warns Bitcoin Investors: ‘If You Have Less Money Than Elon, You Should Probably Be Careful’ originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.