Bill Gates Warns Danger of Cryptocurrency Used in Anonymous Transactions

Technology > Security

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Bill Gates warned people of the danger linked to cryptocurrencies such as bitcoin. He said that despite the growing enthusiasm of the tech community towards it, tax evaders, terrorists, and criminals can benefit from the anonymous transactions that cryptocurrencies offer.

The Microsoft co-founder said in a recent discussion in Reddit Ask Me Anything that he opposes cryptocurrencies because of its anonymity feature. “I don’t think this is a good thing,” he said. Gates also shares that cryptocurrency is a rare technology that allows anonymous drugs trading online, thus causing the death of people “in a fairly direct way.”

During the Ask Me Anything session, a Reddit user said that even plain cash can be used by criminals for illicit activities, but the American business magnate and philanthropist highlighted that crypto makes the transaction easier. He said that using cash requires that the person has to be physically present in order to transfer it. He even cited that the use of anonymous cash makes kidnapping payments difficult.

Bitcoin, the oldest and most popular digital currency, started in 2009 and has continued to grow in popularity because of its ability to avoid the prying eyes of government officials and law enforcement. However, digital currency information firm CryptoCompare’s CEO Charles Hayter said that cryptocurrencies have progressed. He even called the comments of Gates as “true to an extent but slightly naive.”

Hayter adds that people have to look beyond the tribulations and initial trials towards a value transfer system that is dimensionless.