Microsoft co-founder Bill Gates dismissed cryptocurrency as a pure mania-driven asset during an APT News interview, confirming he still refuses to use digital tokens to diversify away from the U.S. dollar, preferring instead a globally balanced basket of equities.
Bill Gates Rejects Crypto for Currency Diversification
Microsoft Corp. co-founder Bill Gates reaffirmed his long-standing skepticism toward digital tokens when asked during an interview on Friday with APT News about moving a small portion of his portfolio out of the U.S. dollar (as reported by Yahoo Finance and Benzinga). Faced with choices including the euro, the Chinese yuan, gold, and cryptocurrency, Gates was quick to reply, I wouldn't choose crypto,
adding that he’s a well-known skeptic of pure mania-driven assets.
Gates said he had missed the gold rally and predicted that the euro would not rise significantly. I think a basket of equities in general is your best long-term. Ideally, a globally balanced basket of equities,
stated Gates, who was the world’s richest individual for many years. Gates was recently asked where he would put money if he wanted to diversify away from the U.S. dollar, and if he wanted to diversify away from the U.S. dollar, he’d rather own a globally diversified basket of stocks.
Why Equities Trump Digital Tokens in Gates’ Portfolio
Instead of turning to alternative currencies or digital tokens, Gates pointed toward traditional corporate ownership. Stocks actually produce something, and when you buy shares of a company, you’re buying a piece of a business that can generate revenue, earnings, and cash flow. Apple sells iPhones, ExxonMobil produces oil, and Caterpillar sells heavy equipment.
Bitcoin doesn’t produce anything, as there’s no revenue, earnings, or cash flow. Your return depends solely on somebody eventually paying you more for it than you paid.
A Consistent Critique Across Market Cycles
Gates’ resistance to cryptocurrencies is far from new. Back in 2018, he described Bitcoin as a greater fool theory
type of investment, and Gates said he would bet against the cryptocurrency if given the opportunity. Gates has been making this argument for years, previously describing Bitcoin as a greater fool theory
investment.
Later in May 2022, he revealed that he doesn’t hold any cryptocurrencies and that he prefers things with valuable output,
arguing that companies create products while crypto’s value ultimately depends on what someone else is willing to pay. When Gates made this remark, Bitcoin was priced at $30,314.33 apiece. Today, its price has swelled to $78,060, representing an upside of 157%.
Weighing Scarcity Against Traditional Fundamentals
Despite his skepticism, Bitcoin has clearly proven that people are willing to assign enormous value to a decentralized digital asset. Anyone who listened to Gates’ warnings years ago and avoided Bitcoin missed some spectacular gains, though price appreciation doesn’t necessarily make something a great long-term investment.
| Asset Class | Underlying Value Driver | Gates’ Stance |
|---|---|---|
| Equities | Revenue, earnings, cash flow, and product output | Preferred long-term holding |
| Cryptocurrency | Future demand and buyer willingness to pay | Rejected as a “pure mania-driven asset” |
None of this means Bitcoin will collapse, and there are legitimate arguments for owning it. Bitcoin has a fixed maximum supply of 21 million coins, can be transferred globally without a traditional financial intermediary, and has gained acceptance among institutional investors. It could reach $100,000 or $200,000, but determining what Bitcoin should be worth is extremely difficult because there are no traditional fundamentals underneath it. You can’t calculate a price-to-earnings ratio, estimate future dividends, or project free cash flow and discount it back to today’s value, leaving buyers largely betting on future demand.
