Microsoft founder Bill Gates just slammed cryptocurrencies, including Bitcoin.
He said, “It’d be good to get rid of that” while highlighting how cryptocurrency “allows for certain criminal activities” in an interview with the Wall Street Journal.
With this, Gates joined the legendary investors and Berkshire Hathaway CEO Warren Buffett — who has publicly expressed his hatred for bitcoin and other cryptocurrencies in the past. Before I discuss why the cryptocurrency market is extremely risky for small investors with a low-risk appetite, let’s explore what Gates and Buffett have to say about it.
Bill Gates slams Bitcoin
Gates is currently the world’s third wealthiest person. Bloomberg billionaires index estimates his net wealth to be around US$137 billion. In another interview with CNBC on Thursday, Gates revealed neither he doesn’t have any Bitcoin position — long or short. Last year, Buffett also criticized cryptocurrency calling it worthless. Back then, he clarified that he would never invest in cryptocurrency.
In his latest interview, Gates showered praIses on Tesla (NASDAQ:TSLA) CEO Elon Musk.
He believes “What Elon’s done with Tesla is fantastic,” calling it “…the biggest single contribution to showing us that electric cars are part of how we solve climate change,” adding, “We need a lot of Elon Musks” and “he should be very proud of what he’s done.”
Tesla’s big Bitcoin bets
Tesla and its latest annual filing last week revealed that it invested US$1.5 billion in Bitcoin. The company also plans to start accepting Bitcoin as payment for its products soon. Tesla — which is now a part of the S&P 500 Index — made its surprising Bitcoin purchase in January.
As a result, investors who now own Tesla stock or S&P 500 funds indirectly have stakes in the cryptocurrency market — whether they like it or not.
After Tesla’s big bets on Bitcoin, the cryptocurrency market has recently seen a massive jump in its trade volume. Not many small investors know that the extremely volatile cryptocurrency market can ruin their years of saving in no time. The fact is you don’t need to buy Bitcoin to multiply your savings in the long term. You can do it the way Warren Buffett does it without taking unnecessary risks.
Invest money the Warren Buffett way
Buffett has made money consistently for decades from the stock market. He simply believes in buying good cheap stocks for the long-term to grow money. Buffett also prefers to invest his money in industries that have good future growth potential.
The demand for electric cars has surged in the last few years. Industry experts predict the 2020s to be the decade of electric and autonomous cars. That’s the reason even big tech companies like Apple (NASDAQ:AAPL) are ready to jump into the automotive industry.
The iPhone maker has secretly been working on its car project for years. It has poached many engineers and auto industry experts from many companies — including Tesla — lately. So, it shouldn’t surprise you if you see Apple launching its branded electric and autonomous car in the coming years.
One great EV stock to buy today
That’s why I expect businesses focused on electric and autonomous car technology to witness a massive growth in the coming years. For example, BlackBerry (TSX:BB)(NYSE:BB) has been my favorite Canadian tech company with its increasing interest in electric vehicles (EVs) and autonomous vehicle-related technology.
The company recently partnered with Amazon Web services to develop its integrated vehicle data platform. The platform would allow automakers to access and utilize vehicle sensor data in real-time. BlackBerry is also expanding its market share in China — the world’s largest car market. The company’s QNX Neutrino operating system — in partnership with Baidu — will soon be used in mass-produced EVs in the country.
Final thought
The cryptocurrency market — at first — may look like an easy way to get rich. However, most retail investors with a small risk appetite tend to lose their money in cryptocurrency trading. That’s why it’s better to follow Buffett and stick to cheap high-growth stocks to multiply your hard-earned money.
The post Bill Gates Slams Bitcoin After Warren Buffett Praises Elon Musk and Tesla appeared first on The Motley Fool Canada.
