Crypto Assets Put Two Tycoons in Battle

Crypto Assets Put Two Tycoons in Battle

The market is diverse, and what for one of the world’s richest men may be a strategic investment, for another, equally important, it’s a joke. This happens with cryptoassets, among which Bitcoin stands out, which today has Bill Gates, founder of Microsoft, and Elon Musk, of SpaceX and Tesla, on two shores.

Not only did they talk about crypto assets, just at a time when there is talk of the “crypto winter”, which already looks like an endless storm and has generated millionaire losses not only for the big fortunes such as those of Binance CEO Changpeng Zhao, but to smaller traders.

Billionaire Bill Gates ruled out cryptocurrency projects, such as those tokens not fungible, Calling them shams “based on the dumbest theory”, thus reviving his past criticisms of digital assets.

“Obviously expensive digital images of monkeys are going to make the world a whole lot better,” the Microsoft founder said sarcastically at an event in Berkeley, Calif., hosted by TechCrunch.

Gates has criticized cryptocurrencies before, arguing with Elon Musk last year over whether Bitcoin is too risky for retail investors and the environmental damage of coin mining.

For example, in a February 2021 interview, the Microsoft founder warned that he feared people would fall into “fads” when they “don’t have as much money to spend”: “My thought general would be that if you have less money than Elon (Musk), you should probably be careful.”

Additionally, during an Ask Me Anything on Reddit earlier this month, says he prefers to invest his money “in things that have a worthwhile outcome”“The value of companies is based on how well they make great products,” Gates wrote.

“The value of cryptocurrencies is just what someone else decides someone else will pay for them, so it doesn’t add to society like other investments,” he said. Explain.

Musk, for his part, has been an advocate for this type of investment, indeed Tesla is the second most Bitcoin company in the world, it already has 43,200 bitcoins on its public balance sheets, and is only preceded by MicroStrategy which has 129,218 bitcoins in its power, according to Statista Digital Economy Compass 2022.

The buzz that crypto assets have had over the past two years is gradually diminishing its effect; In March 2020, bitcoin was valued at around US$5,000, and in November 2021, it surpassed US$64,000, when it hit its market value ceiling and began its precipitous crash.

And after the currency crash, Musk not only had to bear his losses, but now faces legal issues.

The billionaire and his companies SpaceX and Tesla were sued last Friday by an investor seeking US$258 billion to repair damages they suffered after they allegedly fell victim to a pyramid scheme to back cryptocurrency Dogecoin.

US citizen Keith Johnson filed a lawsuit feeling cheated by the tycoon and his companies, which he believed were an illegal organized crime corporation to inflate the price of Dogecoin.

The fact is, since Musk started promoting virtual currency, hosting it at Tesla and naming one of his satellites Dogecoin at SpaceX, investors have lost around $86 billion, Johnson estimates. He would like Musk to reimburse them for this sum, in addition to paying double damages: some 172 billion dollars.

“Defendants knew as early as 2019 that Dogecoin was worthless and yet promoted it for profit…Musk used his pedestal as the richest man in the world to exploit and manipulate the Dogecoin pyramid scheme for profit. profit, exposure and pleasure,” the lawsuit reads.

Months from now, it will be known if demand is thriving and Musk’s wealth has grown at the forefront of crypto assets that few are betting on today.

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