Bill Gates, the tech icon and Microsoft co-founder, has long been critical of cryptocurrencies, especially Bitcoin. Known for his blunt opinions, Gates has often labeled digital currencies as ‘frauds’ or ‘shams,’ referring to them as examples of the ‘greater fool theory.’ This theory suggests that the value of assets, like Bitcoin, is based solely on the belief that others will pay more for it in the future—a concept Gates has dismissed, especially during his remarks at a climate conference in June 2022.
At the time of Gates’s June 2022 comments, Bitcoin was priced at $22,206.79. If you had ignored his warnings and invested just $1,000, you would have bought about 0.045 Bitcoin. Fast forward to December 9, 2024, and Bitcoin has soared to $99,078.55. That same $1,000 investment would now be worth $4,461.63—a 346% return! In comparison, Microsoft’s stock performance during the same period grew by just 65%, a far cry from Bitcoin’s explosive rise.
Gates’s skepticism toward cryptocurrencies is rooted in his belief that they offer no real societal value. He has been vocal about not personally investing in Bitcoin and has frequently cautioned the public, particularly those with limited financial resources, about the extreme volatility of cryptocurrencies and the risks of substantial losses. With a net worth of $108 billion, Gates’s opinions carry significant weight in the financial world.
An intriguing development, however, is Microsoft’s potential decision to invest in Bitcoin. The tech giant is set to hold a shareholder vote regarding the inclusion of Bitcoin in its treasury. Oddly, betting markets on Polymarket suggest that there’s an 89% chance the proposal will be rejected, underscoring the debate surrounding cryptocurrency’s place in the mainstream financial ecosystem.
Despite Bitcoin’s impressive price surge, its volatility remains a serious concern for many investors, including Gates. The contrast between Gates’s personal views and Microsoft’s possible move into cryptocurrency highlights the ongoing tension between traditional investment strategies and the disruptive potential of digital assets. As Bitcoin continues to hover around $99,078.55 (down 1.20% in the past 24 hours), the future will tell whether Gates’s skepticism proves right or wrong about this volatile asset.
