Bill, You're Wrong: Why Bill Gates' Arguments Against Cryptocurrency Are False
Last week, billionaire investor and a co-founder of Microsoft Bill Gates has given controversial comments about cryptocurrencies, saying that they are leading to deaths.
He told during his AMA session on Reddit:
"The main feature of crypto currencies is their anonymity. I don't think this is a good thing. The Government's 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. I think the speculative wave around ICOs and crypto currencies is super risky for those who go long."
But is it true? Let's find out.
Lie 1: Anonymity is the main feature of cryptocurrency
It is safe to say that the main feature of cryptocurrencies is definitely not anonymity. In fact, bitcoin has been criticized for the lack of privacy and poor confidentiality throughout its history. Bitcoin is fully transparent and all transactions in this network are accessible on blockchain. Moreover, there are companies, such as Bitfury or Chainalysis, that are helping the law enforcement to track bitcoin transactions.
Lie 2: Buying drugs with bitcoin is leading to deaths
Criminals are not strict and they are tend to use anything to carry out their activity: cars, airplanes, cash or even Microsoft Windows OS. Following Gates' logic, Microsoft is responsible for drug trafficking, since the most bitcoin purchases are made with the usage of computers with Microsoft Windows OS.
Moreover, despite the fact that the darkweb is growing, the larger part of drug purchases is made in US dollar. According to a research made by CNN in 2009, 90% of dollars had traces of cocaine. Drug dealers love fiat money, because they are truly anonymous and nearly untraceable.
Lie 3: The government's ability to find money laundering, tax evasion and terrorist funding is a good thing
The product architect at Chain Oleg Andreev has said that this is a lie, because it implies that people trust the government and believe that it tax money morally and ethically. However, this is not true.
In fact, it is impossible for people to trust the government fully, when large and regulated banks constantly conduct money laundering schemes.
Andreev wrote on his website:
"Wrong. The governments’ ability to do things rests on large-scale extortion. Governments themselves run giant money scams, extract nominal fees from banks that launder money, fund terrorists around the world and finance unimaginable range of guns and other sadistic devices such as prisons, public schools and DMVs."