Bill Gates Thinks Crypto and NFTs are Based on Greater Fool Theory
“Expensive digital images of monkeys” will “improve the world immensely,” Gates, referring to Bored Ape NFTs.
Bill Gates thinks that Cryptocurrencies and NFTs are nothing but a sham. As the crypto market is going down quickly, investors are pulling out and refraining from investing more money.
Bill Gates on cryptocurrency and NFTs
At the recent Techcrunch talk, Microsoft co-founder stated that the crypto game is “100 percent based on ‘Greater Fool’ theory.” For those unaware, the idea behind such theory is that a ‘fool’ (a person) purchases overvalued assets to sell them for a profit in a place where greater fools (other investors) are willing to pay more for those assets.
Dripping sarcasm, Gates said, “Obviously, expensive digital images of monkeys are going to improve the world immensely.” He was referring to the Bored Ape Yacht Club craze, which was everywhere in 2021.
If you are new to the world of crypto, you should know that “NFT” is an acronym for “Non-Fungible Token.” It is a digital crypto-based token with a unique encrypted ID proving ownership of digital assets, according to its supporters.
Though Bill Gates had criticized crypto before and sparred with fellow billionaire Elon Musk, this is the first time he talked about the Greater Fool Theory. Musk and Gates argued about whether Bitcoin is too risky for retail investors. They also had vastly different opinions about the environmental harm of mining cryptocurrency coins.
Many experts think that if the recent market trends continue, crypto and NFTs might be headed for a dot.com-style bobble burst.
2022 has been a tough year for crypto and NFTs. A crypto exchange Coinbase has decided to lay off 18% of its employees and even indicated that the worst might not be over yet. The company’s CEO, Brian Armstrong highlighted a possible recession, and stressed the need to manage Coinbase’s burn rate and increase efficiency. Armstrong also stated that Coinbase grew “too quickly” during a bull market.
In an email, he wrote, “We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter and could last for an extended period.”
As Bitcoin recently tumbled to about $20,000 (lowest value since 2020), Crypto lending firm Celsius decided to pause all account withdrawals, citing “extreme market conditions. Though
Bitcoin had recovered to $21,264 on Wednesday, it isn’t a piece of good news as the cryptocurrency was trading at 66,935 during a peak in November. It is now 33% of what it was during the peak.
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