“If you have less money than Elon Musk, you should probably be careful,” he said bill Gates for investors bitcoin (BTC). The Microsoft founder made the warning in an interview with Bloomberg on Monday (22), in which he again criticized the cryptocurrency and its energy consumption. The executive explicitly supported digital forms of money, with due regulations.
Bill Gates was concerned about people who follow the euphoria surrounding bitcoin – and which Elon Musk fosters on Twitter. When asked what he thinks of cryptocurrency, price volatility and Tesla’s recent $ 1.5 billion investment, Gates said: “Elon has a lot of money and is very sophisticated. I’m not concerned if your bitcoins will randomly go up or down. But I think that people attracted by this euphoria may not have as much money available ”.
The executive also explained that he does not like cryptography due to the amount of energy used to maintain it and the “anonymity” present in his transactions. But he demonstrated an explicit support for digital currencies as a way to facilitate transactions and reduce costs: “digital money is a good thing”.
According to the tycoon, the Gates Foundation has been working with forms of digital money. Its endorsement, however, is conditional on regulations to prevent money laundering and illegal financing, such as terrorism.
Bill Gates is not bullish on Bitcoin: “If you have less money than Elon, you should probably watch out,” he tells @emilychangtv https://t.co/V7fmKSw0d1 pic.twitter.com/SDVXGddATB
– Bloomberg Technology (@technology) February 23, 2021
Bitcoin spends more energy than Argentina
Gates’ criticism is not without foundation. The University of Cambridge’s Center for Alternative Finance (CCAF) has created an estimated consumption index in terawatt-hours (TWh) of cryptocurrency mining activity worldwide. According to the Bitcoin Electricity Consumption Index (CBECI), the cryptocurrency currently spends 125 TWh, more than countries like Argentina and Norway.
This is because cryptography is decentralized and supported by an active computer network worldwide. These computers process and encrypt all data involving digital currency transactions and record them on the blockchain immutably. However, this process called “mining” is very expensive in energy.
Cryptocurrency is not anonymous
Bill Gates touched on a controversial subject. While Janet Yellen, Secretary of the American Treasury, continues to reinforce her position against bitcoin and claiming that cryptocurrency facilitates illicit financing and money laundering, the nature of the technology behind the cryptocurrency is not anonymous.
In an interview with Tecnoblog, the CEO of Argentine exchange Ripio, Sebastián Serrano, said that bitcoin is a pseudo-anonym: “When a transaction is made with bitcoin, the blockchain records are immutable, and they will be there for the rest of the story. The registration is under a pseudonym, but it is not the same as anonymous ”.
He adds that, in reality, it is indeed possible to identify the two parts of a transaction carried out with bitcoin. Thus, it would be easier to track cryptocurrency than, for example, banknotes when they are used to launder money or in other illegal activities.
As long as your electronic registration at the bitcoin destination is minimally related to your identity, you can trace a transaction to anyone. It is the same as the rest of online technologies. You can create a Twitter account under a fictitious name, but if you associate the identity of the account with the individual who created it, you remove that anonymity. – Sebastián Serrano
Bill Gates had taken a “neutral” stance on BTC
Last week, Gates spoke in an interview with CNBC that does not have bitcoin and therefore would have adopted a neutral stance towards the asset. He added that the digital currency can “go up and down only based on euphoria or whatever the views (of the market) are”.
With information: Yahoo! Finance