Bill Gates says Bitcoin not the future

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Bit Coin - BTCBill Gates said that Bitcoin is not the future of money whiling conceding that it started a revolution of sorts.

Speaking to Backchannel, an online publication, Gates said that it will be necessary to draw upon the revolution that Bitcoin initiated, but that the digital currency will not be good enough on its own.

Specifically, he said that Bitcoin and Ripple could keep fees low and facilitate the movement of money between countries. His comments, coming as they did between questions about undeveloped countries, suggest that digital currencies might have a role to play in helping the developing world.

Nevertheless, he noted that traditional money systems don’t have such huge fluctuations in the value of accounts. Perhaps that’s why he suggests that while the cat is out of the bag in terms of digital currencies, Bitcoin won’t be the dominant force within that movement.

He’s not alone. Many have criticized the “crypto-currency.”

Michael Maiello of The Daily Beast is one of those. He went so far as to call Bitcoin a basket case currency, if it can be considered a currency at all. Noting, as Gates did, that the currency is extremely volatile, bouncing quickly between incredible highs and lows, he said that there are no fundamentals at work, other than popularity.

Maiello also seems to disagree that Bitcoin-style currencies may save the developing world, noting that poor people need corruption-free banking systems rather than an incredibly volatile currency.

For all the debate, however, the word is still out on Bitcoin and other digital currencies. Perhaps only time will tell.

Jacob Maslow is our Editor, and has extensive experience with writing about global financial matters. He also runs a successful SEO consulting business, Mekomi Marketing

  • Gates doesn’t even manage his own money, and the man has never been an innovator. Now he is becoming an old gas bag and should just go spend some of his ill-gotten gains and shut the f*ck up.

    • Richard Lee

      So are you saying he is wrong? If so rebut. Simple name calling (one of the world’s wealthiest self made men) is somewhat juvenile.

      • Just because he is a rich, self made man does not mean that he is right, and he often pontificates on topics about which he knows little or nothing, bitcoin being one of them. Yes, he is wrong, bitcoin passes all three of the tests that the majority of economists pose for what constitutes money (you can read those yourself), and the volatility is no worse than many of the world’s fiat currencies, take a look at the Russian ruble for a recent example. Bitcoin can’t be tampered with by central bankers through gimmicks like quantitative easing, the network cannot be gamed like what has recently happened in the global banking system where hackers have stolen several hundred million dollars (read today’s news). Gates is a first year college dropout, I have a master’s degree in software engineering. While Gates was deceiving IBM about the operating system he bought from Seattle Computer for fifty thousand dollars and made hundreds of millions of dollars with (he’s a clever con artist, but I wouldn’t say innovative by any means), I was writing sophisticated software for evaluating the success of kidney transplants using nuclear medicine imaging techniques in Seattle’s largest hospital. So no, I’m not somewhat juvenile. And I have been seeing Gates’ imbecilic pronouncements in the media for years, most people just don’t realize what a dolt the guy is. And no it isn’t sour grapes, I wouldn’t trade places with the guy either.