If you have less money than Elon Musk, be careful

The founder of Microsoft, Bill Gates has warned potential Bitcoin (BTC) buyers who wish to pursue Elon Musk’s investment strategy. In conversation with Bloomberg’s Emily Chang, Gates suggested that Musk has access to sophisticated management techniques that the average investor is unfamiliar with.

When asked about Bitcoin’s vulnerability to price drops in response to a simple tweet (undoubtedly a reference to Elon Musk’s own social media posts) Gates He said that Elon Musk was likely isolated from such market downturns:

“Elon has tons of money and he’s very sophisticated so I’m not worried his bitcoin going up or down by accident.”

On February 23, a little over two weeks later announced the acquisition of Bitcoin by Tesla for $ 1.5 billion, the price of Bitcoin fell 20%: from $ 58,858 to $ 46,624. At the same time, nearly $ 400 billion in global cryptocurrency market capitalization disappeared.

If you have less money than Elon Musk, be careful
If you have less money than Elon Musk, be careful

Interestingly, the crash came just hours after Musk himself voiced his opinion that current Bitcoin and Ether (ETH) prices were “high”.. Whether it was a criticism or an attempt to divert attention from a possible investigation into Musk’s impact on cryptocurrency prices, the entire market crashed afterwards.

Gates said it would be wrong for the average investor to blindly follow optimism about Musk’s market moves. Non-billionaires recommend “being careful”. He said:

“I think people get carried away with these manias who may not have that much money left. So I’m not optimistic about Bitcoin, and my general thought would be, if you have less money than Elon, you should probably be careful. “

The Microsoft founder addressed the problem of Bitcoin’s electricity consumptionwhich suggests the cryptocurrency isn’t producing much.

“There are things that we invest in society in that produce results. Bitcoin is a lot of energy. It turns out that it promotes anonymous transactions – they are not reversible transactions.“Said Gates.

According to Gates, digital currencies aren’t necessarily bad, he just thinks they should be transparent, reversible, and essentially centralized.. Gates described and noted some of the work that has been done on digital currencies since the beginning of the COVID-19 pandemic The Gates Foundation had used the technology to enable governments to distribute aid to their citizens.

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