Bill Gates Says Crypto and NFTs Are Based Off Greater Fool Theory• June 19, 2022 10:56 am • Comments
Bill Gates took it upon himself at a recent conference to bash NFTs and crypto.
While speaking at the conference in Berkeley, California, Gates stated that the cryptocurrency market and NFTs (digital tokens) are “one hundred percent” based on the greater fool theory.
So, what is the greater fool theory?
The greater fool theory states “the market will always have investors foolish enough to shell out money for an overvalued investment”.
Here’s the moment he said it here:
Bill Gates says crypto and NFTs are ’100 percent based on greater fool theory’pic.twitter.com/3QYcpg0cOP
— Citizen Free Press (@CitizenFreePres) June 19, 2022
CNBC had more on the story:
Bill Gates is not a fan of cryptocurrencies or non-fungible tokens.
Speaking at a TechCrunch talk on climate change Tuesday, the billionaire Microsoft co-founder described the phenomenon as something that’s “100% based on greater fool theory,” referring to the idea that overvalued assets will go up in price when there are enough investors willing to pay more for them.
Gates joked that “expensive digital images of monkeys” would “improve the world immensely,” referring to the much-hyped Bored Ape Yacht Club NFT collection.
NFTs are tokens that can’t be exchanged for one another. They’re often touted as a way to prove ownership of digital assets like art or sports collectibles. But critics see them as overhyped and potentially harmful to the environment given the energy-intensive nature of cryptocurrencies. Many NFTs are built on the network behind ethereum, the second-biggest token.
“I’m used to asset classes … like a farm where they have output, or like a company where they make products,” Gates said.
As for crypto, “I’m not involved in that,” Gates added. “I’m not long or short any of those things.”
Bill Gates thinks crypto and NFTs are a sham. This is the same guy who created Internet Explorer.
— Douglas A. Boneparth (@dougboneparth) June 16, 2022
— The Verge (@verge) June 15, 2022
The Verge covered the story too:
Tech billionaire Bill Gates has dismissed NFTs as “100 percent based on greater fool theory” — the financial concept that even overpriced assets can make money as long as you find a bigger idiot to sell them to.
Speaking at an event on climate change hosted by TechCrunch, Gates said he preferred investing in assets with tangible outputs, like farms or factories, “or a company where they make products,” and that he held no position in cryptocurrencies or NFTs. “I’m not involved in that. I’m not long or short in any of those things,” said Gates, suggesting 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,” quipped Gates, referring to the flagship NFT project, Bored Ape Yacht Club.
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