These digital asset trends are “100% based on the theory of greater deception,” the Microsoft co-founder said Tuesday at a TechCrunch conference, citing the idea that investors can make money on worthless or overvalued assets as long as people are willing to bid. higher. .
Instead, Gates said he prefers investing in the old-fashioned way.
“I’m used to asset classes, like a farm where they have production, or like a company where they make products,” he said.
His comments come at a time when Bitcoin and other cryptocurrencies have been crashing. Bitcoin reached an all-time high of $69,000 in November 2021. Since then, the world’s most valuable cryptocurrency has lost two-thirds of its value, falling below $23,000 on Tuesday. It has lost about 25% of its value since Friday.
Crypto Exchange Coinbase has announced that it is laying off 18% of its employees as the cryptocurrency market continues to crash.
“I think people are so bought into this obsession, who might not have the same amount of money to spare,” Gates said. “So I am not optimistic about Bitcoin.”