Microsoft co-founder Bill Gates once voiced his doubts about Bitcoin (CRYPTO: BTC), stating that he would bet against the cryptocurrency if given the opportunity.
What Happened: During an interview in 2018, Gates criticized Bitcoin's lack of productivity as an asset class.
"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," Gates told CNBC.
He further added, "I agree I would short it if there was an easy way to do it."
Despite his criticism of Bitcoin and Initial Coin Offerings (ICOs), Gates acknowledged the potential of the underlying blockchain technology.
"Bitcoin and ICOs, I believe completely of the crazier, speculative things," Gates added. He also said that someone once gave him some Bitcoin for his birthday, but he sold it a few years afterward.
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Blockchain eliminates the need for a third-party intermediary, such as a bank, by quickly creating a secure, permanent record of a transaction between two parties.
At the time of writing, Bitcoin was trading at $94,816.71.
Why It Matters: Gates' skepticism towards Bitcoin adds to the ongoing debate about the viability of cryptocurrencies.
While the underlying blockchain technology is widely acknowledged for its potential to revolutionize various sectors, the volatility and lack of productivity of cryptocurrencies like Bitcoin continue to raise concerns among investors and industry leaders.
Gates' comments come at a time when Bitcoin's value has seen significant fluctuations, further highlighting the risks associated with such investments.
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This content was partially produced with the help of AI and was reviewed and published by Benzinga editors.
