During an online question and answer session, Microsoft founder Bill Gates revealed his ignorance as to the purpose and potential of cryptocurrencies. Aping the paranoia regarding market competition in montary markets that has recently been voiced by Goldman Sachs, Gates stated,
“The main feature of crypto currencies is their anonymity. I don’t think this is a good thing. The Governments [sic] ability to find money laundering and tax evasion and terrorist funding is a good thing. Right now crypto currencies are used for buying fentanyl and other drugs so it is a rare technology that has caused deaths in a fairly direct way”.
Gates’ regressive attitude totally misunderstands the attraction of cryptocurrencies for young entrepreneurs, the kind which he used to be several decades ago. Cryptocurencies have the following advantage over traditional central bank issued notes:
While the majority of traditional retailers do not yet accept cryptocurrencies for small transactions, when it comes to international investments, cryptocurrencies provide a range of options that traditional investment markets simply do not. Take for example the oil market. Venezuela’s El Petro cryptocurrency will allow small and medium sized individual investments in one of the world’s largest proven oil reserves at the push of a button. El Petro has helped to democratise a commodities market which has traditionally been the reserve of high net worth firms that ordinary people have no access to. This is just one way in which cryptocurrencies have allowed ordinary people to make new and exciting investments without having to deal with overpriced brokerage houses. Cryptos take investment opportunities to the people and it is all there at the push of a button.
International bank transfers which were always inconvenient have become even more so in recent years. Delays in the transfer process are often artificially implemented by banks during which the so-called banksters use your money for their investments, all while inconveniencing the customer and the intended recipient. Furthermore, many banks charge extortionate fees for such transfers in spite of the fact that the technical process is incredibly simple.
With cryptocurrency transfers, blockchain technology allows for fast, safe and effective peer-to-peer commerce where there is no middle man to waste your time or waste your money. If this the real reason banks are afraid of cryptos? You bet!
3. Challenging the role of the Federal Reserve
In 2018, the US remains a superpower for two reasons only. The first is because of its nuclear arsenal and the second is because of the power of the US Dollar and the Federal Reserve Bank which controls it. As China eclipses the US economy in areas where it has not already done so, the Chinese Yuan will come to replace the Dollar as the de-facto international reserve currency. But even before this happens, cryptocurrencies have allowed both individuals and nations to circumvent the increasingly stubborn US financial and monetary markets in order to take matters into their own hands. Venezuela has begun pre-sales of its national cryptocurrency while Russia plans to launch the Cryptorouble later this year. There is also a great deal of discussion in Iran and Turkey about launching a national crypto in the coming months.
4. Reality check
When it comes to financing terrorism, repressive regimes and financing the illegal narcotics market, the biggest financier in the world is the US government and its associated intelligence agencies, including and especially the CIA. If Bill Gates was so concerned about this, he would turn his attention to the US government rather than those who have embraced the legal use of cryptocurrencies.
Of course. the currency used by the US and other governments to finance neferious activities throughout the world, is none other than the US Dollar. Many were quick to point out the fallacy of Gates’ hypothesis on cryptocurrencies by pointing out that the safety net built in to blockchain technology is if anything, far more secure than those associated with traditional currencies.
In that respect, risk with fiat currencies is no different. At the contrary, with proper functionality built-in cryptocurrencies could even be more traceable than fiat.
Bill Gates Claims “CryptoCurrencies Is A Rare Technology Directly Causing Deaths” https://t.co/K77PlOicla
— IT Risk Office (@itriskoffice) February 28, 2018
Your statement about cryptos is the most stupid thing I've heard in a long time. Acc. to your "logic", windows is responsible for child porn and terrorist attacks plans. I think you should therefore go to prison.
— delicanis (@delicanis) February 28, 2018
"Rosenstein notably dispelled the idea that cryptocurrencies are fully anonymous – they are, rather, pseudonymous – and remarked that the laundering process leaves clues for federal investigators to follow to the source."
Bill Gates is a DIP SHIT!👏 #cryptocurrencies #Blockchain
— BiffChain (@BiffChain) February 28, 2018
Cryptocurrencies are popular among ordinary people, entrepreneurs and many forward looking governments, for the very reason that they offer a combination of ease, flexibility, opportunity and safety that are all lacking in traditional fiat currencies and the institutions with which they are associated. Bill Gates may have been something of an entrepreneur once, but he has clearly become a technological has-been, as well as a mouthpiece for the banking industry that helped get him rich.