Bill Gates says crypto and NFTs are ’100% based on greater fool theory’
Prefers assets with tangible outputs
Speaking at a TechCrunch talk on climate change Tuesday, Microsoft co-founder Bill Gates said he doesn’t believe the hype behind NFTs and cryptocurrencies.
Gates dismissed both as market-driven by sentiment. “As an asset class, it’s 100% based on the greater fool theory—that somebody’s going to pay more for it than I do”, he said.
The “greater fool” theory refers to the idea that during a market bubble, anyone can make money by buying overvalued assets, as long as they can sell them to someone who is willing to pay a higher price.
Instead, Gates said he prefers to invest in assets with tangible outputs, like farms or factories, “or a company where they make products.” Gates went on to share that he holds no position in cryptocurrencies or NFTs. “I’m not involved in that. I’m not long or short in any of those things,” he said, adding that he was also suspicious of assets designed to “avoid taxation or any sort of government rules.”
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” Gates joked, referring to one of the most popular NFT projects, Bored Ape Yacht Club.
Of course, this isn’t the first time Gates has criticized cryptocurrency for its lack of value. During a "Reddit Ask Me Anything" session in May, the billionaire stated: "The value of crypto is just what some other person decides someone else will pay for it, so not adding to society like other investments.”
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