Bill Gates issued negative comments on Bitcoin by saying that it is a “greater fool investment” and that he would “short it if there was an easy way to do it,” reported CNBC on May 7.
Gates believes that it is purely speculative and that there is no intrinsic value behind bitcoin.
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” he said.
He also has the same opinion on ICOs speculativeness.
“Bitcoin and ICOs, I believe completely they’re some of the crazier, speculative things,” he mentioned.
However, he told CNBC that the blockchain technology, which is the underlying technology of cryptocurrencies has its merit and that it has an intrinsic value.
The blockchain technology eliminates the need for an intermediary, such as a bank, which creates a secure, permanent and transparent record of transactions between two parties. The blockchain can be applied in many different industries such as Artificial Intelligence, IoT, chain supply and accounting.