Bill Gates: investing in bitcoin is a greater fool theory

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Bill Gates made a rather shocking statement, that if he could do this, he would definitely bet against bitcoin, calling the cryptocurrency one of the most speculative things in the world. Such a statement co-founder and the largest shareholder of the corporation Microsoft, made on Monday, May 7th, in the program “Squawk Box” on the CNBC channel.

“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,” he said.

The theory of a greater fool claims that you can make money buying securities, regardless of their quality, whether they are overpriced or not, and later selling them with profit because there will always be someone “greater fool” who also expects to quickly resell the asset with a profit. That’s right, the theory claims, speculative bubbles are growing, which are sure to burst, bringing down the stock prices in a massive sale.

Also, Bill Gates added that “would shorten bitcoin if there was an easy way to do it.”

“Bitcoin and ICOs, I believe completely [they’re some] of the crazier, speculative things,” he concluded.

Bill Gates spoke rather positively about the cryptocurrency. So, in November 2014, he called bitcoin “a revolutionary technology and the most innovative solution in the modern Internet payment market”, and within a few months, Microsoft began to accept cryptocurrency for payment.

However, this year the billionaire made a rather controversial statement, accusing Bitcoin of directly leading to human deaths.

“Currently, using cryptocurrency, they buy fentanyl and other drugs, so this is one of the few technologies that directly caused deaths. I believe that the wave of speculation around the ICO and cryptocurrency is very risky in the long term,”  stated Gates then.