Mike Novogratz says bitcoin will be stuck around $45,000 for a while after Elon Musk’s tweets – but says ether is having a moment

Mike Novogratz
Mike Novogratz is a leading figure in the bitcoin investment community.

  • Mike Novogratz said bitcoin will be stuck somewhere between $40,000 and $50,000 for up to six weeks.
  • Bitcoin has tumbled around 30% from record highs after Elon Musk criticized the token’s energy use.
  • Novogratz told Bloomberg that Ethereum’s ether is “having a moment” and has many use cases.
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Billionaire crypto investor Mike Novogratz has predicted bitcoin will be stuck somewhere between $40,000 and $50,000 for four to six weeks after Elon Musk halted Tesla payments in the token and criticized its energy use.

In interviews with Bloomberg, Novogratz also said ether – the Ethereum network’s cryptocurrency – was “having a moment” because decentralized finance applications, stablecoins and non-fungible tokens, or NFTs, were being built on the system.

Novogratz called a $40,000 to $50,000 bitcoin price range fair and said: “I think we are going to consolidate for a while, four to six weeks.” He added bitcoin may be stuck between $40,000 and $55,000 for the “next chapter” before ending the year much higher.

The former hedge fund executive said his crypto investment firm Galaxy Digital was buying bitcoin because it thinks it shouldn’t dip below $42,000, the level that was tested on Monday.

Bitcoin was up around 1% to $45,097 on Tuesday. But it’s still down 30% from the record high of near $65,000 hit in April, after a hint from Musk that Tesla may sell its bitcoin holdings caused a further sharp fall on Monday. Musk later clarified Tesla had not sold any bitcoin, which it bought for $1.5 billion in January.

Although Musk’s actions have angered many figures in the bitcoin community, Novogratz said the Tesla boss’s concerns should be taken at face value.

“We use electricity for things that we think provide a tremendous amount of value. And so I think you’re going to see a response from this industry, like you should see a response from every industry, to say… we should do something to offset our footprints,” he said.

Novogratz said the traditional financial world was become increasingly excited about ether, the token on the Ethereum network.

“ETH is certainly having a moment, and it’s having a moment for good reason,” he told Bloomberg TV.

“Right now, it’s got the triple whammy. It’s got payment coins, i.e. stablecoins, being built on top of it. It’s got DeFi [decentralized finance] being built on top of it, and it has NFTs [non-fungible tokens] being built on top of it. So the three major thrusts of the crypto revolution are being built on top of Ethereum.”

Yet Novogratz would not say whether he thought ether could climb higher, after having risen by around 370% year-to-date to $3,500 on Tuesday. He said it would be “healthy” if ether consolidated where it was.

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Bitcoin plunges to $42,000 after Elon Musk tweet-storm – but rebounds after he clarifies Tesla hasn’t sold its holdings

Elon Musk
Tesla CEO Elon Musk caused bitcoin to tumble.

  • Bitcoin plunged to as low as $42,185 on Monday, down 35% from April’s record high, before bouncing.
  • The price tumbled after Elon Musk suggested Tesla may sell its holdings and trolled bitcoin fans.
  • Yet bitcoin climbed back above $44,000 after Musk said Tesla had not in fact sold its stake.
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Bitcoin plunged to its lowest level since February on Monday after Elon Musk suggested Tesla might sell, or had sold, its holdings, only to rebound somewhat when the billionaire clarified his electric car company still held its stake.

The world’s most-traded cryptocurrency plunged to $42,185 at one point on Monday morning, after Musk replied “Indeed” to a Twitter post that said: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings.”

That was the lowest level since February 8 and 35% below the all-time high of close to $65,000 reached in April.

But bitcoin then rebounded somewhat when Musk tweeted: “To clarify speculation, Tesla has not sold any Bitcoin.” The token was down 8.7% at $44,896 at 4.40 a.m. ET.

Bitcoin has fallen sharply in recent days after Musk – previously one of its biggest cheerleaders – appeared to turn his back on the cryptocurrency.

The slide started on Wednesday when Musk tweeted a note saying that Tesla would stop accepting bitcoin as payment for its electric cars, saying the token’s “insane” energy use was damaging to the climate.

Musk’s announcement shocked crypto fans and sparked a broader sell-off in cryptocurrencies including ether, dogecoin and XRP.

His suggestion on Sunday night that Tesla had sold, or might sell, its bitcoin stake, which it bought for $1.5 billion in January, caused panic among investors in the token.

The Tesla boss has been one of the central drivers of the bitcoin boom. The electric car company selling its stake would be a major blow to the legitimacy of the digital asset.

Musk spent the weekend arguing with and trolling bitcoin fans on Twitter about its energy use and structural flaws.

“Bitcoin is actually highly centralized, with supermajority controlled by handful of big mining (aka hashing) companies,” he tweeted on Sunday night.

“A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound “decentralized” to you?”

He also continued to suggest Tesla was looking at accepting dogecoin – a cryptocurrency started as a joke in 2013 – as payment for its cars, saying doge would win “hands down” if it sped up its blockchain network.

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Elon Musk continues to talk up dogecoin – to the dismay of bitcoin bulls

Elon Musk
Elon Musk

Elon Musk tweeted about improving the dogecoin network on Sunday and said “obnoxious” bitcoin bulls made him want to go all-in on the joke cryptocurrency, before hinting Tesla may sell its bitcoin holdings.

Musk replied to a number of tweets with comments that suggest he believes dogecoin could become a serious cryptocurrency – despite being started as a prank in 2013.

The Tesla chief executive triggered a plunge in bitcoin on Sunday evening when he suggested the electric car company might sell its holdings, after buying $1.5 billion worth in January. He later clarified that it hadn’t sold any bitcoin.

After facing criticism over his stance on cryptocurrencies, he replied to one tweet saying: “Obnoxious threads like this make me want to go all in on Doge.”

Musk also responded to a tweet which said: “Elon is choosing $DOGE because Dogecoin is better than #Bitcoin in many fundamental ways.”

Musk replied: “Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.”

He added: “For those bad at math, 100X higher transaction volume with 100X lower fees means total fees earned stay same. Low fees & high volume are needed to become currency of Earth.”

Musk’s tweets came days after he announced Tesla would stop taking bitcoin as payment due to the “insane” amount of energy it takes to create new coins and secure the network.

The Tesla boss said in the same message he was looking for low-energy alternatives. Then on Thursday, he tweeted: “Working with Doge devs to improve system transaction efficiency. Potentially promising.”

Musk’s interest in dogecoin has angered many bitcoin fans, who see the meme token as undermining the case for cryptocurrencies.

One Twitter account tweeted Musk saying: “Your recent poorly informed criticism of #bitcoin + support for Doge may be the perfect troll…or you might actually believe this (God I hope not).”

Dogecoin critics argue the coin’s network has a number of supply flaws, such as the fact that here is no cap on the number that can be created, in particular.

Despite Musk’s tweets, dogecoin was down 4.9% in the 24-hour period to 7.30 a.m. ET to trade at $0.50479. The token was up close to 20,000% over the last year, however.

Bitcoin traded 8% lower at $45,259, more than 30% off the record high touched in April.

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Bitcoin adoption was picking up pace. Elon Musk slamming its ‘insane’ energy use may have stopped that.

FILE - In this Nov. 21, 2019, file photo, Tesla CEO Elon Musk introduces the Cybertruck at Tesla's design studio in Hawthorne, Calif. Tesla CEO Elon Musk appears to have hit all the milestones necessary to receive a stock award currently worth about $730 million to pad the eccentric billionaire's already vast fortune. The electric car maker ended Wednesday, May 6, 2020, with an average market value of $100.4 billion for the past six months, according to data drawn from FactSet Research. (AP Photo/Ringo H.W. Chiu, File)
Elon Musk’s U-turn was a bombshell for the crypto world.

  • Elon Musk’s U-turn on accepting bitcoin as payment due to energy concerns rocked the crypto world.
  • It could also halt the adoption of bitcoin by companies, who are increasingly climate-conscious.
  • Yet enthusiasts argue that Musk remains committed and that cryptocurrencies will bounce back.
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When Elon Musk’s Tesla announced it had bought $1.5 billion of bitcoin and intended to start accepting it as payment in February, the cryptocurrency shot up and speculation abounded that other companies would soon follow suit.

But Musk stunned cryptocurrency fans on Wednesday when he announced that Tesla would stop accepting bitcoin due to fears that its “insane” energy use is hurting the planet. Bitcoin tumbled as much as 15% on Wednesday before recovering somewhat and was around 22% below its record high on Friday.

The idea that big companies – from Jack Dorsey’s Square to Wall Street banks – are buying in or offering crypto services to clients has been a huge driver of the bitcoin boom, adding legitimacy and capital to the market.

But after the most famous crypto enthusiast criticized bitcoin’s energy use, the question is, will companies continue to adopt bitcoin?

Bitcoin clashes with the ESG moment

A key problem for investors attracted by bitcoin’s stellar returns is that the cryptocurrency moment has come at a time when environmental, social and governance (ESG) investing is center stage.

Yet, bitcoin uses more energy than Sweden each year, with vast amounts of computing power required to solve complex puzzles to secure the network and create new coins. Bitcoin’s defenders say it increasingly uses renewable energy but a Bank of America report estimated that 72% of “mining” is done in China, where coal power dominates.

“Over the long term, it is difficult to see how this is consistent with a transition to a low carbon economy,” said David Sneyd, vice president in BMO Global Asset Management’s responsible investment team.

“We consider bitcoin, and other cryptocurrencies, to be a net negative from an ESG standpoint. As it currently stands, the positive potential of bitcoin remains unproven, but the negatives are very real and present.”

None of this was a secret before Musk’s bombshell tweet. But the backing of Tesla – the most famous electric car company in the world – undoubtedly made bitcoin enthusiasts feel more secure about the environmental impact of the digital asset.

On-the-fence companies may think twice

Edward Moya, senior market analyst at currency platform Oanda, told Insider: “A large part of Wall Street has embraced the ESG movement and while Musk didn’t reveal anything new, he brought bitcoin’s CO2 problem center stage.”

Moya said: “Tesla was the first domino that was supposed to unleash a steady wave of fresh interest across corporate America.” But Musk’s move could now “have a big impact on companies that were on the fence about accepting bitcoin as a form of payment or even putting on their balance sheets,” he added.

There are some signs that other advocates are cooling on the digital asset, with Square telling Financial News it had no plans to purchase more bitcoin. The fintech company, founded by Twitter chief executive Jack Dorsey, has been one of bitcoin’s biggest supporters and corporate buyers.

For some, companies buying bitcoin to hold on their balance sheets was always a bad idea, which was never likely to be copied by many big players.

Jerry Klein, managing director of Treasury Partners in New York, told Insider: “We don’t believe there ever was a case for adding bitcoin to corporate balance sheets.

“The vast majority of public companies are focused on cash preservation and don’t want to hold volatile assets. Most treasurers and CFOs see only downsides in taking risk with corporate cash.”

Die-hard bitcoin fans look set to keep buying

However, Oanda’s Moya said that die-hard companies that have bet big on bitcoin look unlikely to change their mind any time soon.

Michael Saylor, chief executive of technology company MicroStrategy, which has bought more than $2 billion of bitcoin, quickly questioned Musk’s move on Twitter. He also announced he had ploughed more money into the cryptocurrency.

David Wachsman, CEO and founder of communications firm Wachsman, told Insider that it is important to recognize that Musk himself has said he remains committed to cryptocurrencies.

“Lost in the hyperbole of the headlines is Tesla’s decision to continue to hold bitcoin on its balance sheet,” Wachsman said.

“This demonstrates its long-term commitment to cryptocurrencies as a technology, and is a pertinent reminder to other corporations of the risk of being phased out of the market without moving on digital currencies.”

Yet in the meantime, it appears Musk’s criticisms have focused investors’ minds on bitcoin’s problems, with numerous financial companies releasing reports into the environmental impact.

In a note to clients, analysts at Swiss bank UBS wrote: “The prospect of large gains may tempt investors, but we think speculation in crypto is a gamble, not an investment.”

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Dogecoin continues to defy gravity – getting a fresh boost from Coinbase trading and hype-man Elon Musk

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Coinbase said it would add dogecoin on Thursday.

Dogecoin continued to defy critics – and gravity – on Friday, after major boosts from the world’s biggest cryptocurrency exchange Coinbase and its main hype-man Elon Musk.

Coinbase, which went public in a coming-of-age moment from the crypto world in April, said on Thursday it planned to start offering dogecoin trading on its app in six to eight weeks.

The exchange’s chief financial officer Alesia Haas told CNBC: “We want to offer all assets that meet our listing standards and we hope to be the place where you can come and trade anything that you want to trade.”

It followed moves by trading platforms eToro and Gemini to add dogecoin, fueling the rally earlier in May and showed the growing acceptance of the joke cryptocurrency.

But it was Musk’s latest tweet that powered the newest rebound in dogecoin, which had slipped considerably from all-time highs of above $0.70.

Musk has halted Tesla payments with bitcoin but has said he is looking for more eco-friendly alternatives. He tweeted on Thursday night: “Working with Doge devs to improve system transaction efficiency. Potentially promising.” Dogecoin promptly soared and was up 33% to $0.53139 on Friday morning.

Dogecoin’s rally earlier in May captivated retail traders and unnerved many traditional investors, who saw it as a sign of irrational behaviour spurred on by huge amounts of stimulus from governments and central banks.

Many bitcoin enthusiasts quickly became tired of the joke token stealing the crypto headlines.

Barry Silbert, founder and chief executive of the company that owns Grayscale, the world’s biggest crypto fund manager, announced his company was betting against the token and tweeted: “Okay $DOGE peeps, it’s been fun. Welcome to crypto! But the time has come for you to convert your DOGE to BTC.”

Billionaire investor-turned-crypto-evangelist Mike Novogratz admitted he had misunderstood dogecoin’s appeal. But he nonetheless told Bloomberg TV he thought it’s “very dangerous to be invested” and that it was a “retail frenzy” with no institutional backing.

Analysts have consistently warned dogecoin is a purely speculative asset, and is even more risky than the already highly volatile bitcoin.

But predictions that dogecoin will suddenly crash have so far been wide of the mark, with the token continuing to draw life from celebrity buzz and online meme culture.

However, there are plenty of obstacles ahead for dogecoin and the cryptocurrency world as a whole. Not least Musk himself, who is liable to sudden changes of heart when it comes to his enthusiasms.

Nic Carter, founding partner of blockchain investment firm Castle Island Ventures, was scathing about Musk’s claim to be working with dogecoin developers, suggesting they don’t exist.

He tweeted a picture of a man talking to a brick wall, captioned: “Elon working with the doge devs.”

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Bitcoin plunges as much as 15% after Elon Musk halts Tesla payments – calling the token’s energy use ‘insane’

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Elon Musk has been one of the major drivers of the cryptocurrency boom.

Bitcoin tumbled as much as 15% after Tesla boss Elon Musk said on Wednesday night that the car company would stop accepting payments in the cryptocurrency because of concerns about its environmental impact.

Musk later doubled down on his major U-turn, tweeting a chart showing bitcoin’s energy use and calling it “insane.”

The world’s most-traded cryptocurrency then pared some of its gains and was down 8.7% to $49,758 at 9.30 a.m. ET. Bitcoin remained around 70% higher for the year, but was 22% lower than a record high of close to $65,000 touched in April.

Musk’s announcement shocked the cryptocurrency world. The Tesla founder and chief executive has been one of the biggest advocates of cryptocurrencies, and has previously appeared to dismiss concerns about their energy use.

The revelation that Tesla had bought $1.5 billion of bitcoin and would start accepting payment in the token sent the price soaring 16% in a single day in February and added legitimacy to the asset class.

Yet Musk appeared to have had a change of heart, tweeting a statement on Wednesday night saying: “Tesla has suspended vehicle purchases using Bitcoin.

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

Critics have long attacked bitcoin for its energy use. Bitcoin “mining” – the process of securing the network and creating coins using vast amounts of computing power – uses more energy each year than Sweden, according to Cambridge University researchers.

A Bank of America report estimated 73% of bitcoin mining takes place in China, where the majority of energy is generated by coal power.

Musk’s announcement sent other cryptocurrencies tumbling, too. Ether, the second-biggest coin by market size, was down 10.7% in the 24 hours to 9.30 a.m. ET. Dogecoin, XRP and Binance Coin all tumbled.

“Tesla accepting transactions bitcoin was viewed as a major step for the crypto market,” Daniel Ives, an analyst at Wedbush, said in a note.

“Now Tesla’s/Musk reversal will have a short-term negative impact on bitcoin and the crypto landscape as the market digests this confusing news from one of its biggest supporters.”

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Bitcoin plunges as much as 15% after Elon Musk halts Tesla payments, citing climate damage in major U-turn

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Elon Musk has been a key driver of the cryptocurrency boom.

Bitcoin tumbled as much as 15% on Wednesday night after Elon Musk said his electric car company Tesla would stop accepting payments in the cryptocurrency because of concerns about its environmental impact.

The world’s most-traded cryptocurrency then pared some of its gains and was down 7.3% to $50,534 at 4.20 a.m. ET. Bitcoin remained around 72% higher for the year, but was 22% lower than a record high of close to $65,000 touched in April.

Musk’s announcement shocked the cryptocurrency world. The Tesla founder and chief executive has been one of the biggest advocates of cryptocurrencies, and has previously appeared to dismiss concerns about their energy use.

The revelation that Tesla had bought $1.5 billion of bitcoin and would start accepting payment in the token sent the price soaring 16% in a single day in February and added legitimacy to the asset class.

Yet Musk appeared to have had a change of heart, tweeting a statement on Wednesday night saying: “Tesla has suspended vehicle purchases using Bitcoin.

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

Critics have long attacked bitcoin for its energy use. Bitcoin “mining” – the process of securing the network and creating coins using vast amounts of computing power – uses more energy each year than Sweden, according to Cambridge University researchers.

A Bank of America report estimated 73% of bitcoin mining takes place in China, where the majority of energy is generated by coal power.

Musk’s announcement sent other cryptocurrencies tumbling, too. Ether, the second-biggest coin by market size, was down 8.4% in the 24 hours to 4.10 a.m. ET. Dogecoin, XRP and Binance Coin all tumbled.

“For an asset whose price is driven mostly by psychological sentiment and momentum, bitcoin could have a hard time recovering from this and may never revisit [its] recent highs again,” Jesse Cohen, senior analyst at financial platform Investing.com, said.

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Bitcoin rebounds back above $55,000 from 2-month lows, after Tesla says it believes in the long-term value of the cryptocurrency

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Elon Musk’s Tesla has been a major driver of the cryptocurrency boom.

Bitcoin’s rebound from near two-month lows continued on Tuesday, boosted by Elon Musk’s Tesla saying it believes in the long-term value of the world’s most traded cryptocurrency, as well as renewed interest from big players.

The digital asset was up 3.1% to $54,911 at 7.10 a.m. ET. It had earlier touched $55,020, around 17% higher than the almost 2-month low of close to $47,000 hit on Sunday.

Bitcoin remained well below its all-time high of close to $65,000, reached on April 14, however.

The cryptocurrency’s rebound was boosted by Tesla’s first-quarter earnings, released Monday. They showed the electric car company made a $101 million profit by selling 10% of its bitcoin holdings, which initially cost $1.5 billion in January.

“We do believe long term in the value of bitcoin,” Zachary Kirkhorn, Tesla’s chief financial officer, said in an earnings call. In March, Kirkhorn was given the title master of coin.

“So it is our intent to hold what we have long term and continue to accumulate bitcoin from transactions from our customers as they purchase vehicles.”

The bounce in the dominant cryptocurrency has also been aided by renewed interest from major institutions, with JPMorgan planning a bitcoin fund for wealthy clients, according to Coindesk.

Tesla has been one of the major forces behind the boom in bitcoin, which is up more than 600% over the last year. Musk’s company said in February it had bought $1.5 billion worth of bitcoin, sending the cryptocurrency surging.

Yet bitcoin has fallen sharply from recent all-time highs, which were reached as excitement built around the $100 billion direct listing of crypto exchange Coinbase.

Analysts said a number of factors seemed to have triggered the drop, including US President Joe Biden’s capital gains tax plans; a sharp drop in mining rates around the world; a ban on cryptocurrency payments in Turkey; and volatility created by bitcoin futures.

However, many commentators have argued that the future looks bright. “If bitcoin continues to stay in the news and more people express interest in cryptos, retail demand should remain healthy,” Edward Moya, senior market analyst at Oanda, said.

“Institutional flows still seem firmly committed with their longer-term bets.”

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Elon Musk turns down $1 million offer for an NFT of his tweet, saying it ‘doesn’t feel quite right’

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Elon Musk has been a key driver of the craze for all things crypto

  • Elon Musk said he would not sell his tweet as an NFT in the end, despite offering it up on Monday.
  • The Tesla boss said it “didn’t feel quite right” to sell the tweet of a song about NFTs.
  • Musk – who changed his title to “Technoking of Tesla” on Monday – has been a key driver of cryptomania.
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Tesla “Technoking” Elon Musk has turned down a $1.1 million offer to buy one of his tweets as a non-fungible token after putting it up for sale, saying it “doesn’t feel quite right.”

Musk – who has been a key driver of the mania for all things crypto – said on Monday that he was selling a tweet of a song about NFTs as an NFT, days after a token sold for a record $69 million.

Yet the Tesla boss and multi-billionaire had a change of heart on Tuesday night, tweeting: “Actually, doesn’t feel quite right selling this. Will pass.”

Musk’s tweet is listed on the blockchain-backed auction platform Valuables and had attracted a bid of $1.12 million from a user called @sinaEstavi.

The tweet is of a techno song about NFTs, with the lyrics: “NFT, for your vanity, computers never sleep, it’s verified, it’s guaranteed.”

The video features a gold trophy emblazoned with the words “Vanity Trophy”, “NFT” and “HODL”, a reference to holding assets instead of selling them.

Non-fungible tokens, or NFTs, are a special class of digital assets that cannot be exchanged with one another for equal value, or broken down into smaller bits. They often operate as a type of collectors item and cannot be duplicated.

They are the hottest new thing in the crypto world, and grabbed global attention last week when digital artist Beeple sold an NFT for $69 million, making him one of the three most expensive living artists.

It was only a matter of time before they grabbed Musk’s attention too, given that he has been a major force behind the recent bitcoin rally and has long championed meme cryptocurrency dogecoin.

Musk officially changed his job title to “Technoking of Tesla” on Monday in his latest irreverent move. Tesla chief financial officer Zach Kirkhorn has also been given the title of “Master of Coin”, a change that could reference Tesla’s purchase of $1.5 billion in bitcoin.

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Bill Gates advised against investing in Bitcoin, saying cryptocurrencies damage the environment

Bill Gates
Gates spoke out against bitcoin citing environmental damages caused by the cryptocurrency.

  • Billionaire Microsoft founder Bill Gates criticized bitcoin’s environmental impact in an interview.
  • Speaking to CNBC’s Andrew Ross Sorkin, he said it used more electricity than any other method.
  • Cambridge University analysis suggested bitcoin used more energy than Argentina, the BBC reported.
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Bill Gates is one of the richest people in the world and an outspoken advocate, fighting against climate change.

In a Clubhouse interview with New York Times reporter and CNBC co-anchor Andrew Ross in February, Gates spoke out against bitcoin citing environmental damages caused by the cryptocurrency.

“Bitcoin uses more electricity per transaction than any other method known to mankind,” Gates said. “It’s not a great climate thing.”However, he added that bitcoin’s energy use may be acceptable if green energy is used and it is not “crowding out other users.”

Gates clarified that he does not see climate change and bitcoin as being “closely related,” and labeled himself a “bitcoin skeptic,” citing a preference to invest in “products” like malaria and measles vaccines rather than cryptocurrencies.

Cryptocurrencies have become a major culprit for energy consumption, with the world’s bitcoin network using as much power as the whole of Ireland in 2018.

Analysis by the University of Cambridge released earlier this year suggested that bitcoin was now consuming more electricity than Argentina, according to the BBC.

Gates is not the only one to speak out against bitcoin’s environmental impact, with CIO of Société Générale’s Kleinwort Hambros bank, Fahad Kamal, saying bitcoin’s energy use was “staggering” and a major worry for investors.

Economist Nouriel Roubini also criticized bitcoin and the growing trend in bitcoin investment, spiked by endorsements from Tesla chief Elon Musk.

“Since the fundamental value of bitcoin is zero and would be negative if a proper carbon tax was applied to its massive polluting energy-hogging production, I predict that the current bubble will eventually end in another bust,” Roubini said.

However, others have stood behind bitcoin and the cryptocurrency soared to record highs on February 21, reaching $58,640. “Mad Money” host Jim Cramer previously told Sorkin on CNBC that it was “almost irresponsible” for companies not to own bitcoin.

Meanwhile, Ark Invest founder Cathie Woods said she expected the price of bitcoin to rise between $40,000 and $400,000 and that digital wallets would gut traditional banks.

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