Bill Gates says crypto has ‘no valuable output’
There are some tech leaders that still need to be convinced on the value of crypto. Billionaire Bill Gates has declared cryptocurrencies have “no value” as analysts predict more “destruction” in the market.
Since last week’s crash, the price of major cryptocurrencies like Bitcoin and Ethereum have somewhat stabilised. Despite that, Gates sees little future for them.
He said this during an Ask Me Anything (AMA) exchange on Reddit. “The value of companies is based on how they make great products,” Gates said. “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.”
Gates has previously expressed some skepticism about Bitcoin. In a February interview with Bloomberg, the billionaire expressed concern for everyday people getting sucked into the Bitcoin frenzy.
Meanwhile, crypto analyst Rekt Capital, thinks smaller altcoins could shed more than 90 per cent of their value if the current fall in the market continues.
Blockchain.com CEO Peter Smith has made a similar prediction of impending “creative destruction”.
“What’s going on in the market is a washout of risk and leverage across the entire global market system” Smith added. “This is going to be a long process of adoption and growth.”
Smith is predicting the weaker links in the crypto economy to be wiped out in the next few months.
Of course, there are also plenty of analysts, investors, and tech leaders that are bullish on a return for crypto. As a new segment, volatility is inevitable, and early adopters are always at risk of investing in something that doesn’t pan out as the rest of the market organises itself.