Bill Gates: Bitcoin technology is exciting, but it needs reform

Microsoft founder Bill Gates and President-elect Donald J. Trump recently had a telephone conversation about climate change.

The billionaire is a major investor in the technology sector and a Bitcoin enthusiast who is committed to using innovative technologies to address climate change.

Gates acknowledged that under Mr Trump there would be fewer incentives for renewable energy, but that investment and research in the field would increase.

Gates has always chosen to stand up for Bitcoin. This billionaire, who is used to big events, always appears excited when talking about the future of Bitcoin technology.

I think Bitcoin is a masterpiece of technology, but it is an area where governments must ensure their dominance.

Bitcoin is a very exciting technology due to its low transaction costs. It is an advantage over physical currencies which are cumbersome to handle when it comes to high value transactions.

However, Gates's appreciation for Bitcoin is "limited." He believes that Bitcoin technology alone cannot completely solve the problem.

Technologies like Bitcoin can significantly reduce the cost of transferring money across borders. But Bitcoin will not be the dominant system. When we talk about domestic economies, transaction attribution is an inevitable topic. That is, if a transaction is sent in error, you can choose to reverse it (the Bitcoin blockchain is irreversible). In addition, the value of the traditional (currency) system does not have the risk of skyrocketing or plummeting, so the value of the property in your account will not fluctuate dramatically. Bitcoin needs reform because it is not perfect.

The Gates Foundation, which funded the blockchain company Bitsoko with $100,000 in July last year, has this year turned its investment focus to Factom, a blockchain-as-a-service (BaaS) technology company that aims to record medical records around the world through biometric recognition.

Some people believe that Bitcoin can help solve climate change. Others believe that the Bitcoin network's consensus mechanism, i.e., miners, may consume as much electricity as the entire country of Denmark by 2020.