Microsoft co-founder Bill Gates is the latest billionaire to pour cold water on digital currencies, saying if there was an easy way to bet against bitcoin and other cryptocurrencies he would.
Speaking on CNBC on Monday, the philanthropist joined fellow billionaires Warren Buffett and Charlie Munger in voicing skepticism of digital assets. As an asset class, youre not producing anything and so you shouldnt expect it to go up, said Gates of cryptocurrencies. Its kind of a pure greater fool theory type of investment.
The greater fool theory is where the price of an asset is valued irrationally on the belief that someone else will pay a higher price than what the prior person paid.
I would short it if there was an easy way to do it. Bill Gates
This is not Gates first criticism of digital currencies. In a Reddit Ask Me Anything, or AMA, session in February, Gates said that digital currencies encouraged illegal behavior. Right now crypto currencies are used for buying fentanyl and other drugs so it is a rare technology that has caused deaths in a fairly direct way, wrote Gates, adding that the speculative initical coin offering, or ICO, market is super risky.
Read: Bill Gates: Cryptocurrencies are responsible for deaths in a fairly direct way
The comments from the Microsoft
co-founder comes two days after Buffett speaking at Berkshire Hathaways annual meeting said that bitcoin is probably rat poison squared, while Mun