Bill Gates has repeatedly warned against investing in cryptocurrencies, expressing skepticism about their actual value, citing several main reasons:
1. Extreme price volatility
Gates believes that cryptocurrencies are extremely volatile, making them a risky investment, especially for individual investors who may lose their money quickly.
2. Lack of real value
Gates has stated that cryptocurrencies do not produce anything tangible, unlike companies or real estate, which own real assets and generate revenue.
3. Reliance on the “Greater Fool Theory”
He believes that the cryptocurrency market is based on the idea that investors buy assets only in the hope that they will find someone else to buy them at a higher price, making it similar to speculation.
4. Risks of fraud and money laundering
He has expressed concern that cryptocurrencies are being used for illegal activities, such as money laundering and financing crimes, due to their unregulated nature.
5. Massive energy consumption
He has criticized cryptocurrency mining, especially Bitcoin, for its massive energy consumption and negative environmental impact.
6. Market instability
He pointed out that celebrities and big investors can inflate the value of cryptocurrencies, leaving small investors vulnerable to huge losses when prices collapse.
