For the third time, the philanthropist has turned to Reddit for an “Ask Me Anything”. As expected, the session was a huge success, but one of the most striking details was Gates’s opinion on Bitcoin and other cryptocurrencies. While he acknowledged the benefits this new technology can bring to regions with limited banking resources, he also mentioned that Bitcoin’s volatility makes the currency unviable… for now.
Right now, each Bitcoin is worth about 230 dollars. When I checked its price a few hours ago, it was at 238. A 3.3 percent variation could be seen as a quiet day, given we’ve seen it rise and fall sharply. Some associate this volatility with growing pains, others see it as part of its nature, and then there are those who think it’s a problem to solve. With a market capitalization exceeding three billion dollars, Bitcoin is the definitive example of a cryptocurrency, for better or worse. And remembering it achieved all this in just over six years, it’s always interesting to hear expert opinions. If we’re talking about money, why not ask one of the richest men on the planet?
Gates’s third AMA
About twelve hours ago, Bill Gates opened his third “Ask Me Anything” on Reddit. The former Microsoft (in general tasks, of course) has turned to that portal not only to stay in touch with users but also to participate in initiatives like the Secret Santa and of course to promote the work his foundation does. With almost 14,000 comments, no one doubts the conversation’s success, and as in the previous occasion, a question about Bitcoin and other cryptocurrencies came up. On one hand, he described Bitcoin as an “exciting” technology and said his foundation is working with digital currencies so that people with fewer resources can access banking services. However, he highlights two reasons why they don’t use Bitcoin: the first is the aforementioned volatility. If purchasing power is limited from the start, an aggressive fluctuation in Bitcoin’s price can cause more problems than it tries to solve. The second is that in the face of a simple transaction error, it should be able to be reversed immediately, which would affect its anonymity.
The case against Bitcoin
He also acknowledged that transaction costs will become increasingly lower with the help of cryptocurrencies, and that the most important challenge is to ensure that they don’t help terrorists, a challenge that extends to any new technology. Personally, I think Gates’s doubts are reasonable (except for the fact that Bitcoin “is” compatible with refunds, despite the lack of traditional protection mechanisms), but at the same time he’s saying that Bitcoin needs some adjustments to its identity if it wants to reach its full potential. Do you use Bitcoin? Do you think Gates is wrong? Comments are open.
