Member-only story
Here’s why billionaire Bill Gates is wrong about crypto.
Valid Concerns
Bill Gates, notorious for being highly skeptical of cryptocurrency, stated a valid concern in a recent Reddit Ask Me Anything Q&A session.
“I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it, so not adding to society like other investments,” he declared.
On the surface, this seems like a valid concern, but informed crypto investors know that Gates has been misled. Ponzi schemes, scams, and get-rich-quick promises seem to be the only ideas that some people associate with digital currency. With the rise of instant crypto millionaires, people often overlook the concrete social contributions the decentralized finance sector provides in favor of seeking short-term riches.
Decentralized finance, DeFi for short, is the unapologetic antagonist to the billionaire’s claim.
Decentralized finance’s valuable output lies in its ability to create a more empowered life for low-income populations. This ability coincides with the Gates Foundation’s goal to provide the poorest people around the globe with ‘security and prosperity for themselves, their families, and their communities.’ In places where economic stagnancy threatens the well-being of millions, decentralized finance will lead the way to monetary growth and worldwide prosperity.
Why is Bill Gates opposed to an industry that directly benefits the people his foundation aims to help?
The problem DeFi solves
When trying to improve their financial state, low-income populations rarely have options outside of centralized finance. Lengthy forms, identity checks, and other archaic practices provide barriers that seem impossible for them to overcome. As a result, over 2 billion people do not have access to traditional financial services that could aid their economic growth. For example, in Mexico, a country with a GDP of approximately 1.29 trillion U.S…
