I Invest in Things With Valuable Output, Bill Gates on Cryptocurrency

During a Thursday Ask Me Anything exchange on Reddit, Microsoft cofounder Bill Gates, the fourth-richest person in the world with a net worth of $125 billion, said he doesn’t own any digital currency.

“I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it, so not adding to society like other investments,” said Bill Gates.

Gates showed his disinterest in cryptocurrencies as he believes they don’t add to “society” like other investments. The price of major cryptocurrencies like bitcoin and Ethereum have stabilized somewhat since last week’s crash. Bitcoin is down 27 percent this month, while Ethereum saw a dip of 36 percent.

This is not the first time that Gates has spoken out against digital currencies. In a February interview with Bloomberg, the billionaire said his fellow tech billionaire Elon Musk was merely an example of why he’s turned off by everyday Bitcoin use.

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“Elon has tons of money, and he’s very sophisticated, so I don’t worry that his Bitcoin will randomly go up or down,” Bill Gates said. “I do think people get brought into these manias who may not have as much money to spare, so I’m not bullish on Bitcoin.”

The billionaire expressed his concern for ordinary investors who put their money into cryptos.

“If you have less money than Elon, you should probably watch out,” Bill Gates said.

Gates said he’s primarily concerned about the lack of regulation around cryptocurrency. He red listed two of the main risks associated with Bitcoin and other forms of cryptocurrency: They’re decentralized, and they can be highly volatile.

″[Bitcoin] happens to promote anonymous transactions,” Gates said. “They’re not reversible transactions,” he added.