Bill Gates, a co-founder of Microsoft and one of the world’s wealthiest men, has consistently expressed his disdain for crypto and NFTs.
He recently reiterated his stance, claiming that Non-Fungible Tokens were worthless because they had no use cases that their customers could access.
The once-richest man on earth noted that digital assets like cryptocurrencies and NFT are based on “the greater fool theory“; hence, holding or interacting with them was pointless. He advised people to be wary of cryptocurrencies and educate themselves about their associated risks.
Bill Gates is well-known for his anti-crypto stance, which he reiterated at a recent climate conference. During his address, he made some scathing remarks regarding NFTs and the Bored Ape Yacht Club (BAYC) NFT.
The Bored Ape Yacht Club NFT project was established in 2021, and its worth has steadily increased since then, capturing the attention of celebrities and prominent individuals. It had evolved into an affluent club of wealthy members, holding NFTs that depicted varying illustrations of monkeys.
At the event hosted by TechCrunch and held in California, Bill Gates remarked sarcastically,
“Obviously, expensive digital images of monkeys are going to improve the world immensely.”
The co-founder of Microsoft stated that he has never been interested in cryptocurrencies and NFTs. He does not hold any of them or have a short or long position in any of them.
During the event, he mentioned that such assets were based on the greater fool theory.
“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.”
This means that users tend to ignore crucial aspects such as earnings reports, financial statements, and much more while selling them to a new buyer, who acts as a “fool,” paying more than what the previous owner paid for it.
It may happen successfully for a while, but after that, the market corrects, and prices crash, leaving the “fools” with overpriced assets and no buyers.
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