Why Elites Like Bill Gates and Warren Buffett Dismiss Bitcoin — And How It Shifts Wealth to the People | by Gökhan SAKALLI | The Capital | Feb, 2025
Introduction
Bitcoin has been a disruptive force in the financial world since its creation in 2009. Yet, many of the world’s wealthiest elites — such as Bill Gates and Warren Buffett — have been vocal critics of Bitcoin. Their skepticism isn’t just personal opinion; it’s deeply tied to their interests in the traditional financial system. Buffett, for instance, has extensive holdings in banks and financial institutions, which stand to lose power as Bitcoin grows. Meanwhile, Gates, despite his advocacy for financial inclusion, has dismissed Bitcoin as speculative and environmentally damaging.
But why are these influential figures so opposed to Bitcoin? The answer lies in how Bitcoin threatens the existing financial order — shifting wealth, power, and financial services away from centralized institutions and into the hands of ordinary people.
1. The Threat to Banks and Centralized Finance
Bitcoin operates on a decentralized network, meaning no central authority (such as a government or bank) controls it. This is a direct challenge to the traditional banking system, which relies on customers depositing their money in banks, allowing these institutions to generate profits through loans, fees, and investments.
Warren Buffett’s empire, Berkshire Hathaway, owns significant stakes in financial giants like Bank of America, Wells Fargo, and American Express. If Bitcoin adoption grows, fewer people will rely on banks for savings, transactions, and wealth storage, potentially devaluing Buffett’s holdings.
2. Financial Freedom vs. Control
Elites and governments favor controlled financial systems where transactions can be monitored, taxed, and restricted. Bitcoin, on the other hand, is permissionless — anyone can use it without needing approval from a bank or government. This makes it an attractive alternative for people living under oppressive regimes, those without access to banking, and anyone who values financial sovereignty.
3. Inflation and Wealth Transfer
One of the most critical aspects of Bitcoin is its fixed supply of 21 million coins. Unlike fiat currencies, which can be endlessly printed by central banks (leading to inflation and the erosion of purchasing power), Bitcoin offers a hedge against inflation.
Wealthy elites often benefit from inflation because they own appreciating assets like stocks and real estate, while the average person sees their savings lose value over time. Bitcoin changes this dynamic by giving individuals a way to store value outside of the traditional financial system.
Bitcoin is not just a speculative asset — it is a tool for financial empowerment. Here’s how:
1. Banking the Unbanked
Over a billion people worldwide lack access to traditional banking services. Bitcoin provides them with a way to save, send, and receive money without needing a bank account. All that’s required is a smartphone and internet access. This is particularly powerful in countries with unstable currencies and corrupt banking systems.
2. Low-Cost, Borderless Transactions
Traditional financial institutions charge hefty fees for international remittances and transactions. Bitcoin allows people to send money across borders almost instantly and at a fraction of the cost. This is a game-changer for migrant workers who send billions of dollars home every year, as well as businesses operating in global markets.
3. Protection Against Government Overreach
Governments and central banks have a history of freezing bank accounts, confiscating funds, and imposing capital controls during times of economic crisis. Bitcoin gives people a way to store their wealth in a secure, censorship-resistant form, free from government interference.
4. Wealth Creation Through Decentralized Finance (DeFi)
Bitcoin is at the heart of a growing financial ecosystem that includes decentralized finance (DeFi). This new movement allows people to earn interest, take out loans, and trade assets without relying on traditional banks. By removing middlemen, DeFi puts more wealth-generating opportunities directly into the hands of individuals.
Despite its benefits, Bitcoin is constantly under attack by mainstream financial elites. Here’s why:
• They fear losing control — Bitcoin operates outside the control of governments and central banks, making it harder for elites to manipulate financial systems for their own benefit.
• They benefit from the status quo — Wealthy investors and business leaders have built their fortunes within the current system. A decentralized alternative threatens their privileged positions.
• They misunderstand the technology — Many critics, including Warren Buffett, have admitted they don’t fully understand Bitcoin. Buffett famously called it “rat poison squared,” despite Bitcoin’s growing adoption and success.
Conclusion
Bitcoin represents a financial revolution — one that shifts power from centralized institutions to the people. While billionaires like Bill Gates and Warren Buffett dismiss it, millions of ordinary people worldwide are using Bitcoin to gain financial freedom, escape inflation, and access banking services for the first time.
As Bitcoin adoption grows, it will continue to challenge the traditional financial system, empowering individuals in ways that were previously unimaginable. The future of money is decentralized, and those who embrace it stand to benefit the most.
