As the cryptocurrency market continues to experience one of the most bullish cycles in its history, Bill Gates,
the co-founder of Microsoft, has once again expressed his skepticism about digital currencies, reiterating his belief that they are essentially “useless.”
Despite the increasing popularity of cryptocurrencies like Bitcoin and Ripple XRP, Gates remains unimpressed by the industry’s growth.
In a recent interview with The New York Times, Gates shared his views on the current state of the cryptocurrency market, commenting,
“There are people with high I.Q.s who have fooled themselves on that one.”
His remarks came during a period when tokens like Bitcoin reached new record highs, with many attributing the surge to the pro-crypto stance of former U.S. President Donald Trump.
Trump had made it a key goal to position America as the global leader in cryptocurrency, even launching his own $TRUMP meme coin to further promote digital assets.
Trump’s administration appointed officials with a strong pro-crypto agenda, spurring optimism in the digital token space. However, the crypto market’s volatility reached new heights in early February 2025, as the prices of top cryptocurrencies plummeted by more than 10%. This followed rising tensions regarding a potential trade war between the U.S. and other countries, triggered by Trump’s aggressive tariff policies. Despite the market setback, cryptocurrencies like Bitcoin quickly rebounded, with prices climbing back above £80,519 ($100,000) in the first week of February.
Gates’ Warning About Crypto Investments
Bill Gates has been consistent in warning the public about the risks of investing in Bitcoin, particularly for those without significant financial resources. In 2022, Gates described cryptocurrencies as a risky venture for those who don’t have substantial wealth to back up their investments. During a Bloomberg interview, Gates specifically addressed Tesla’s considerable Bitcoin holdings, noting that Tesla CEO Elon Musk is a highly wealthy and savvy investor, so he didn’t worry about the potential volatility of Musk’s Bitcoin investments. However, Gates cautioned that for regular people who don’t have “as much money to spare,” Bitcoin might not be the safest investment.
Gates’ view aligns with his general stance on financial matters, which often emphasize caution and long-term stability. He continued to express doubt about Bitcoin’s future, stating, “I’m not bullish on Bitcoin.” He advised that individuals with fewer resources than Musk should be careful with their investments in digital assets.
Why Gates Believes Bitcoin Is ‘Useless’
Bill Gates has explained that Bitcoin, unlike other financial instruments and assets, does not produce tangible output or value. According to him, Bitcoin’s value is tied to speculative trading rather than any inherent utility. Gates further elaborated, noting that Bitcoin consumes an excessive amount of energy and facilitates anonymous transactions, which can be irreversible. For these reasons, he does not see Bitcoin as a beneficial asset for society.
The billionaire philanthropist also pointed out that the Gates Foundation, which works on numerous initiatives related to digital currency, focuses on digital currencies where the identities of users can be verified, as opposed to the anonymous nature of Bitcoin transactions.
This view mirrors that of Gates’ long-time friend and fellow billionaire, Warren Buffett. Buffett has long been critical of cryptocurrencies, referring to them as “rat poison” and predicting that the market would eventually collapse. Buffett’s firm, Berkshire Hathaway, has maintained its stance of avoiding any direct investment in digital tokens. In 2018, Buffett told CNBC that his company would “never have a position in them.”
However, recent filings with the U.S. Securities and Exchange Commission (SEC) revealed that Berkshire Hathaway has invested in a different kind of digital asset: Nu Holdings, a Brazilian bank that offers cryptocurrency services. Berkshire Hathaway holds over 86.43 million shares of Nu Holdings, valued at over £885 million ($1.1 billion). Nu Holdings, which serves over 100 million customers in Brazil, Colombia, and Mexico, launched Nubank Cripto in 2022, a platform that supports crypto investments and token conversions. Despite Buffett’s public criticism of cryptocurrencies, his company has profited from the growing adoption of digital tokens through its investment in Nu Holdings.
Conclusion
Despite the current bullish momentum in the crypto market, Bill Gates continues to stand by his skeptical view of Bitcoin and other digital currencies. He believes that while cryptocurrencies may have captured the attention of investors, they are ultimately lacking in practical value and utility. Gates’ warnings about the speculative nature of cryptocurrencies resonate with his broader investment philosophy, which favors sustainable and tangible assets over volatile, unproductive investments. While the crypto market may continue to thrive in certain areas, Gates’ concerns remain a point of caution for those looking to enter the digital token space.
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