Bill Gates, Warren Buffett and others … Why do these celebrities hate Bitcoin?

“It’s just a gambling machine, with a lot of fraud attached to it. There’s a lot of mystery, a lot of loss. Bitcoin has yielded nothing.”

(Warren Buffett, American businessman and fifth richest man in the world) (1)

Over the years, the rise of Bitcoin and other digital currencies has been the topic of everyone’s talk, as the main trend in the business world. Despite the many crises these currencies have gone through, they have recently seen one of the biggest stages of their collapse in years. According to Bloomberg, the massive sales wiped out $ 200 billion from the cryptocurrency market in just one day. (2)

These huge losses once again reminded a group of key businessmen and economists around the world, who for many years have continued to question the credibility of digital currencies in general and Bitcoin in particular, even when they are at their highest levels. . Some began to wonder: Were they right, even in part? Or has digital currencies become a reality that imposes itself on everyone, and the current decline is temporary, followed by an impending rise?

Bill Gates … a shaky position

Bill Gates

The founder of “Microsoft”, the richest man on earth for several decades, the famous American billionaire and philanthropist Bill Gates, whose fortune is now estimated at $ 125 billion, can describe his position on digital currencies in general and Bitcoin in particular becomes as a “vibrating position”, or as he himself described his position of cryptocurrencies as a neutral attitude, not supportive or anti-cryptocurrency, but he is certainly not a supporter of it.

In 2014, Gates’ view of digital currencies tended to be supportive and optimistic, as he admired their benefits, especially with regard to fast transfer methods, as he said that Bitcoin is better than ordinary currencies in the speed and efficiency of transfers, especially for large money transfers.

But that view clearly changed with the advent of 2018, in an interview with CNBC, which specializes in economics, Gates said he already owns some bitcoins that were given to him on his birthday but later sold them . Gates mentioned at the time that he did not become particularly interested in trading digital currencies, after finding out that the basic idea of ​​this currency is that you sell it to another person at a higher price, so the other person takes it and then sells it to a third person at a greater price, and so on, without meaning that it is in sight something.

In the same meeting, Gates pointed out that cryptocurrency trading is a pure example of the “Greater Fool Theory”, a theory that means people are in a hurry to buy an imaginary asset of no value, and rely on more investors who later comes to buy at a higher price. , ie relying on the appearance of a larger fool who is always willing to pay more money, influenced by the activity of a market rather than by the intrinsic value that the investment originally provided.

However, Gates has never denied in all his statements that he is interested in the blockchain technology behind cryptocurrencies, and that it is “really good technology” in terms of sharing databases and securing transfers. With its reservations, its massive philanthropic foundation, the Bill & Melinda Gates Foundation, accepts donations and makes money transfers through a number of cryptocurrencies.

But Gates’ most offensive stance on digital currencies was in a meeting with “Bloomberg” in February 2021, in which he expressed caution about what he described as the “madness” that exists in bitcoin currency, given its value. can change based on a tweet by the exciting American entrepreneur. Controversy, Elon Musk, via his Twitter account. In response, Gates said: “Musk has a lot of money, so I do not care if his cryptocurrency goes up or down. So I think the people who are participating in this madness should have a lot more money than they need. If you have less money. From Elon Musk, you have to be careful. ” (3, 4, 5)

Warren Buffett, an outspoken runner

Warren Buffett

“If you owned all the bitcoins in the world, and you offered it to me to buy it from you for $ 25, I would not buy it from you.”

(Warren Buffett)

Warren Buffett is not a common name in the world of stock investing, perhaps the most important name in the field for decades. The 92-year-old American businessman, chairman of the board of directors of Berkshire Hathaway, which invests in the shares of most companies and major brands, owns a fortune estimated at $ 110 billion, which he fully raised by to invest in the stock markets.

We’re talking about a seasoned investor who is skilled in the world of investing and seizing opportunities. Hundreds of books and interviews have been published about him and about business and finance. To everyone’s surprise, a person with this huge investment mindset is considered to be one of the most celebrities hostile to cryptocurrencies since its appearance so far.

In one of his open meetings with investors in his giant institution, one of the participants asked him a question about cryptocurrencies, and his answer was: “If the people present in this room own all the land in the United States, or all the apartments in the country, and they offer me to buy 1% of these properties For $ 25 billion, I’ll immediately write them a check for the amount, but I will not do the same for cryptocurrencies “Actually, I would not buy all the bitcoin in the world for just $ 25.”

Then Buffett explained his view by distinguishing between assets and bitcoin, where he said that assets such as land, real estate, farms and shares are productive assets that provide real value, while digital currencies are something that depends on someone’s impulse to get to you. for sale. , and then sell to someone else, without having any intrinsic value. . Buffett shares this view with Bill Gates, but he is apparently more anti-Bitcoin.

One of his most hostile statements against digital currencies was what he made in a press interview with CNBC in 2018, where he stressed that digital currencies are going to end badly, and that even if their rise continues over the next five or ten years , he sure stays of one thing, which is It produces nothing. Buffett explained that people are attracted to investment in them by saying that people are attracted to anything “magical”. (6, 7)

Jamie Damon .. very hate

Jimmy Damon

We are talking about one of the fiercest haters of cryptocurrency, perhaps so exaggerated that he refuses to call it “currency”. Jamie Dimon, an American businessman with an estimated fortune of $ 1.8 billion, is a veteran banker who serves as chairman of the board of directors of JPMorgan, which is one of the 4 largest U.S. banks, and is several times below the 100 arranged. most influential people in different years.

Dimon took over as CEO of the international investment bank “JP Morgan” in 2005, and until now is considered an icon in the banking and investment sector. In 2015, his first discussion of Bitcoin appeared, and this year he made it clear: “No government will accept the support of a cryptocurrency that moves across borders and has no control over it, it can not happen.” Of course, it turns out he was wrong.

In 2017, Dimon came back with a controversial statement he made in the middle of a conference, in which he described digital currencies as a fraud (Fraud), and said that the inevitable end of Bitcoin would be bad, and even Dimon exaggerated his hostility to digital currencies when he threatened employees at his giant banking institution that they should be fired if it was proven that they traded cryptocurrencies, because they would be “stupid” as he puts it.

Later, with the successes of cryptocurrencies in the ensuing years, Dimon softened his attack, declaring that the blockchain technology underlying cryptocurrencies was promising. Ironically, in 2019, JPMorgan launched its own digital currency called JPM. However, Dimon went on to make his anti-crypto statements that they would always be considered “worthless” despite the effectiveness of blockchain technology. (8)

Alwaleed bin Talal .. Enron under construction

Alwaleed bin Talal

Although he does not have multiple statements of support or rejection of digital currencies like his predecessors, Saudi Prince Al-Waleed bin Talal bin Abdulaziz, founder and owner of Kingdom Holding Company, which invests in a large number of companies and brands, previously showed a conservative attitude towards digital currencies Years ago.

Prince Alwaleed said in his interview with CNBC about Bitcoin and cryptocurrencies: “It does not make sense. This thing is not regulated, not controlled, not censored. I simply do not believe this thing called Bitcoin, and I think it’s a bubble that will burst. One day. I think it’s a new Enron under construction. “

In his statement, the prince intended to refer to the giant American energy company “Enron”, which went bankrupt in 2001 in the biggest financial scandal for many years, as its value continued to rise in the stock market by artificially increasing its profits blow and hide. its losses, through the use of fictitious companies and fraudulent Accounts with the aim of increasing their value in the stock market, which led to its total collapse later. (9)

Nouriel Roubini..the mother of bubbles

Nouriel Roubini

“Bitcoin is the mother and father of all kinds of fraud and bubbles.”

(Nouriel Roubini)

The name Nouriel Roubini may not be well-known in the media, but it is certainly well-known in the corridors of economists. Roubini is an Iranian-American economist and professor of economics at New York University.

Unlike other economists who were concerned about digital currencies but praised blockchain technology, Norell’s attack included both digital currencies and the blockchain technology that produced them, as he described them more than once as the most celebrated technology, although it was the most celebrated. least useful technology. at all.

Norell always describes digital currencies as mere price manipulation, and tampers with hopes of a rapid enrichment that is not based on any intrinsic value of these currencies, and that it only depends entirely on “pump and shower” patterns and exploits them . to harvest more traders. (10)

In the end, crypto-haters today are certainly few when compared to proponents, but they are big names in the business and financial world, and their arguments to question their credibility cannot be ignored. Some things related to Bitcoin will remain closely related, such as its decentralization and lack of oversight and the way value is created in it, will continue to irritate some, and perhaps these and other reasons were the motivation behind some governments taking measures to digitally regulate currencies and oversee their trading.

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Sources:

  1. Warren Buffett: ‘Bitcoin Gambling Device Produced Nothing’
  2. More than $ 200 billion wiped out cryptocurrency market in one day
  3. Billionaire Bill Gates once received bitcoin as a birthday present – here’s what he did with it
  4. Why Bill Gates warns against investing in Bitcoin: ‘If you have less money than Elon, beware’
  5. Greater Fool Theory
  6. Warren Buffett says he will not take all the Bitcoin in the world for $ 25
  7. Warren Buffett on buying bitcoin: ‘It’s not invested’
  8. Jamie Dimon says he no longer uses the word “cryptocurrency”
  9. Prince Alwaleed says bitcoin will implode: ‘Enron in the making’
  10. What are Nouriel Roubini’s thoughts on Crypto at the moment?

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