Gates: Crypto is 'Mania,' Prefers Stocks

Microsoft co-founder Bill Gates has voiced his skepticism about cryptocurrency as an investment, preferring traditional assets for diversification away from the U.S. dollar. His preferred alternatives include gold, the euro, Chinese yuan, or a globally diversified basket of stocks. Gates characterizes crypto as a 'pure mania-driven asset,' emphasizing that unlike stocks which represent ownership in revenue-generating businesses, Bitcoin produces nothing tangible.

He has consistently advocated for investments with 'valuable output.' In 2018, Gates referred to Bitcoin as a 'greater fool theory' investment, indicating that its value relies on finding someone willing to pay more for it later. While acknowledging Bitcoin's potential for price appreciation and its acceptance by institutional investors, Gates points out the difficulty in valuing it due to a lack of fundamental financial metrics like earnings or cash flow.