Why Bill Gates warns against bitcoin

Bill Gates, the third richest person in the world, is not a fan of bitcoin, in part for environmental reasons. According to the billionaire, not only does bitcoin consume a lot of energy, it can also cause problems for investors who don’t have a lot of money to spare, given its price volatility.

“Elon (Musk, note) has a lot of money and he’s very sophisticated, so I’m not worried that his bitcoin will randomly increase or decrease,” Mr. Gates told Bloomberg in an interview . « So I’m not optimistic about bitcoin, and my general opinion is that if you have less money than Elon you should probably be careful. »

Bitcoin’s price tumbled 13% on Tuesday, to around $ 46,817, falling from a record high of $ 58,354 reached just two days ago, as investors benefited from the near doubling in price since the start of the year. ‘year.

The amount of energy used by the bitcoin in question

Climate philanthropist and activist Bill Gates, whose book “How to Avoid Climate Disaster” recently went on sale, previously said cryptocurrency has taken its toll in fairly direct ways. He also believes that the anonymity behind bitcoin transactions is not a good thing.

“The Gates Foundation does a lot in terms of digital currency, but these are things where you can see who is doing the transaction,” he said in the Bloomberg interview. « Digital currency is a good thing, it’s a different approach. »

Secretary of State for the Treasury Janet Yellen also voiced her doubts about cryptocurrencies and their environmental impact, given the amount of energy used in mining digital tokens.

“I don’t think bitcoin is widely used as a transaction mechanism,” Janet Yellen told The New York Times on Monday. « It is an extremely inefficient way of conducting transactions and the amount of energy consumed to process these transactions is staggering. »

Version originale : Shalini Nagarajan/Markets Insider