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Bill Gates Calls Crypto and NFTs “Greater Fool Theory”
Bill Gates, a Microsoft co-founder, has said that the “greater fool theory” underpins crypto investments such as nonfungible tokens (NFTs).
“I’m used to asset classes … like a farm where they have output, or like a company where they make products,” Gates said. “I’m not involved in that. I’m not long or short any of those things.”
In a mocking reference to the Bored Ape Yacht Club NFTs, which generated millions of dollars in funding and celebrity endorsements, the multi-billionaire who spoke at a climate conference questioned whether or not pricey digital photographs of monkeys would really better the world.
“expensive digital images of monkeys” would “improve the world immensely,” referring to Bored Ape Yacht Club NFTs.”
Bill Gates tells us what he really thinks of Bored Apes at #TCClimate: pic.twitter.com/vBc8BaaTup
— TechCrunch (@TechCrunch) June 14, 2022
Breakthrough Energy, the venture capital firm he founded to invest in renewable energy sources, was represented at the conference by Gates.
Investors who believe in the “greater fool theory” buy expensive assets in the hopes that someone else would pay even more for them and end up investing in these assets, regardless of their true underlying worth.
Digital banking is more efficient than cryptocurrencies, according to Bill Gates, who promotes it via his charitable organizations. While Gates has been vocal in his criticism of the crypto sector, he has also said that he does not participate in the market because of its volatile nature.
Gates believes that only those with the kind of cash that Musk has should become involved in the cryptocurrency market.
However, given the recent criticism of the crypto industry, such as the Terra (LUNA) ecosystem catastrophe, in which millions of investors lost huge sums of money, his opinion looks more relevant. and after that Celsius is also becoming unstable causing panic in the community.
“I don’t own any. 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, not adding to society like other investments.”