Bill Gates' stark Bitcoin warning as Trump election win sees crypto value soar
Topics: Bitcoin, Cryptocurrency, Donald Trump, Elon Musk, Technology
Ellie Kemp
Featured Image Credit: John Nacion/Getty Images/Chesnot/Getty Images
Topics: Bitcoin, Cryptocurrency, Donald Trump, Elon Musk, Technology
Bill Gates' warning to Bitcoin investors has resurfaced as the cryptocurrency's value dramatically jumped following Donald Trump's US election victory.
President-Elect Trump is an outspoken - albeit fairly new - supporter of cryptocurrency.
Among other controversial policies, he has pledged to maintain the federal government's Bitcoin (BTC) reserves, vowing to make America 'the crypto capital of the planet'.
Surged by more than 10 percent on Wednesday morning (November 6), Bitcoin hit a record high of almost $75,400, with its previous peak, recorded in March, being just under $74,000.
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The climb began Tuesday night (November 5) as counts began to be declared and it was projected the Republican Party nominee would likely beat Democrat Kamala Harris to the White House.
At the time of publishing on Wednesday afternoon, BTC has dipped slightly to around $74,611.
But finance experts reckon it could see a $16,000 boost in the lead-up to Trump's January 6 inauguration.
Javier Molina, market analyst at investment platform eToro, told iNews: “With Donald Trump’s victory in the US presidential election, the crypto asset market – particularly bitcoin – has started to react, anticipating potential policies that could favour these digital assets.
“Technical projections place bitcoin’s price between $80,000 and $90,000 before his inauguration in January 2025.”
Those who've never invested in BTC before might be wondering if now is the time to do so, but Bill Gates previously issued a stark reminder to those considering the plunge.
Speaking to Bloomberg Technology in 2021, the Microsoft founder discussed crypto-advocate and richest man in the world Elon Musk.
That same year, Elon's Tesla invested some $1.5 billion in BTC, according to CNBC.
At the time, Gates said: "Elon has tons of money and he's very sophisticated so I don't worry that his Bitcoin will randomly go up or down. I do think people get brought into these manias who may not have as much money to spare so I'm not bullish on Bitcoin."
But he advised: "My general thought would be if you have less money than Elon, watch out."
While the Microsoft founder had his concerns about BTC, he did note that digital money is 'a super positive thing' especially when transparency and regulation are involved.
But before you start investing, it's worth bearing in mind that crypto transactions are irreversible and the market is known for being incredibly volatile.
Laith Khalaf, head of investment analysis at AJ Bell, warned: “While the price of bitcoin is currently riding high, in the past we’ve seen strong performance quickly giving way to dramatic price falls.
“That in itself is a big hindrance to bitcoin being adopted by consumers and businesses as a means of exchange and a blot on the long term investment case for the cryptocurrency.
"If you think bitcoin is the future of currency despite its volatility, ask yourself if you’d be willing to be paid by your employer or billed by your mortgage provider in the cryptocurrency.”