While the world looks at Bitcoins in awe with many even pooling their resources to invest in them, the billionaire Microsoft founder Bill Gates thinks otherwise. Expressing his views on cryptocurrencies and their growth, Gates said that he preferred to exercise caution regarding Bitcoin considering how its value could be swayed by something as simple as a tweet from Tesla CEO Elon Musk. Gates reiterated how he does not worry about the sudden rise and fall in Musk’s Bitcoin as the latter has enough money and employs enough money to influence its price direction. However, investors with not so much financial strength as Musk must refrain from parking their earnings in Bitcoin owing to its extreme volatility.
The billionaire also showed his lack of enthusiasm for Bitcoin saying how Musk was merely an example of his antagonism towards cryptocurrencies. Explaining his opposition towards regular Bitcoin use, Gates shared how he was concerned about the lack of regulation around cryptocurrencies. The tech billionaire attributed the volatility in Bitcoins and other cryptocurrencies to their decentralized nature.
Ironically, Afghans have turned to cryptocurrencies amid US sanctions that led to the drying up of foreign aid. Many persecuted families in this country use Binance's P2P crypto exchange that allows them to buy and sell coins with other users on the platform. This digital currency with no physical form has proved immensely valuable to the Afghanis fleeing their country following Taliban occupation.
While the use of digital currency is pervasive and used most by developing countries, it may take a while for all countries to allow transactions using Bitcoins. However, Gates’ fear may soon be mitigated with the United States government planning to regulate cryptocurrencies. On March 09, 2022, US President Joe Biden signed an executive order requiring the country’s federal agencies to develop new crypto-related policy recommendations. The guidance by the country’s top authorities would ensure consumer protection, financial stability, illicit activity, U.S. competitiveness, financial inclusion, and responsible innovation.
The signing of the executive order comes at a time when cryptocurrencies like altcoins are at high risk for fraud considering that they lose their value very quickly, thus, rendering them unreliable investment options.
However, in India, the Reserve Bank of India has maintained the government's stand against the introduction of cryptocurrency citing how cryptocurrencies continue to be unregulated in India.