February 23, 2021 | AtoZ Markets – Microsoft's founder Bill Gates warned investors who want to buy Bitcoin (BTC) by following Elon Musk's investment strategy.
Speaking with Bloomberg's Emily Chang, Gates suggested that Musk has access to sophisticated investment management techniques that ordinary investors cannot.
Bill Gates Issues Warning to Would-Be Bitcoin Investors
Asked about the bitcoin price's tendency to depreciate due to just one tweet (no doubt referring to Elon Musk's own social media posts), Gates noted that Musk is likely eluding such market crashes:
"Elon has tons of money and he’s very sophisticated so, you know, I don’t worry that his Bitcoin would randomly go up or down."
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On February 23, the price of Bitcoin fell 20% from $58,258 to $46,624, just two weeks after Tesla announced that it purchased $1.5 billion worth of BTC. On the other hand, 400 billion dollars were deleted from the global market value of cryptocurrencies.
Interestingly, this crash happened hours after Musk said the prices for Bitcoin and Ether (ETH) were "high".
Gates said it would be a mistake for the average investor to blindly follow Musk's frenzy of market movements, that non-billionaires should watch out:
“I think people who don't have a lot of money to spare are drawn to this madness. I don't think Bitcoin will rise, and my general idea is that if you have less money than Elon, you have to be careful."
Read also: ‘I’ve Taken a Neutral View’ on Bitcoin, Says Bill Gates
Gates thinks digital currencies are not a bad thing, but that they should be transparent, revocable and centralized.
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