Bill Gates Says He Still Won't Invest in Crypto, Calls It a "Pure Mania-Driven Asset." Here's Why He's Right.
Bitcoin has momentum, but stocks have fundamentals.
Bill Gates, co-founder of Microsoft, has stated that he would not invest in cryptocurrency, describing it as a "pure mania-driven asset." When asked where he would put his money if he wanted to diversify away from the U.S. dollar, Gates mentioned options like gold, the euro, Chinese yuan, and cryptocurrency. However, he opted for a globally diversified basket of stocks instead.
Gates' reasoning is understandable, as Bitcoin's value is undeniable, having demonstrated that people are willing to assign significant value to a decentralized digital asset. Those who heeded Gates' warnings years ago and avoided Bitcoin missed out on considerable gains. Nonetheless, price appreciation alone does not guarantee a sound long-term investment.
When purchasing shares of a company, you are acquiring a stake in a business that generates revenue, earnings, and cash flow. Companies like Apple sell iPhones, ExxonMobil produces oil, and Caterpillar manufactures heavy equipment.
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