Published: Wed, May 09, 2018
Finance | By Cynthia Curry

Bill Gates Thinks Digital Currencies Are Poor Investments

Bill Gates Thinks Digital Currencies Are Poor Investments

Bitcoin, Munger went on to say, "reminds me of Oscar Wilde's definition of fox hunting: "The pursuit of the uneatable by the unspeakable". Bill Gates has a strong opposition to bitcoin, as well as other digital currencies, that the only involvement he had with it resulted from a birthday gift - which he even sold a couple of years after.

Gates dismissed bitcoin as an asset class saying it does not support any real production activity and as such, there was no reason why it should be expected to increase in value.

"Bitcoin and ICOs, I believe completely [they're some] of the crazier, speculative things", Gates said. Apparently, the master of investment was a little harsher in terms of criticism than the Microsoft co-founder.

That interview comes following the Annual Shareholder Meeting Saturday, in which both Buffett and Munger doubled down on their distaste for Bitcoin.

Bill Gates has joined the other wealthy Wall Street moguls who continuously criticise Cryptocurrencies.

On the subject of ICOs, he considers them to be speculations of a insane variety.

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"It's kind of a pure "greater fool theory" type of investment", Gates added, also chipping in that he'd bet against the currency if he could. "It does create a rising price, creates more buyers".

Tuesday morning, Bitcoin traded close $ 9,100.

While it looks like Bill Gates is exclusively anti-cryptocurrency here, he did acknowledge the fact that the blockchain technology behind digital currencies has some value. What Buffett means is that if you purchase bitcoin, you will never be able to produce anything of value from it.

Munger has also referred to bitcoin as poison. Though it certainly didn't help that billionaires Warren Buffett, Charlie Munger, and Bill Gates have taken turns criticizing the cryptocurrency in recent days.

When asked by another attendee about the cryptocurrency craze, Buffett admits that these digitalized coins will "come to bad endings".

The negative comments might be temporarily slowing down the growth in bitcoin prices.

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