Microsoft co-founder Bill Gates has stated that crypto is a 100% Greater Fool Theory based asset class. The billionaire also scoffed at Bored Ape’s NFT, stating:” Obviously, expensive digital images of monkeys are going to improve the world immensely.”
Bill Gates talks about crypto and NFT
Microsoft co-founder Bill Gates spoke about cryptocurrencies and non-compound tokens (NFTs) at this year’s Techcrunch Sessions at the Climate 2022 event Tuesday.
Referring to the Bored Ape Yacht Club’s NFTs, Gates sarcastically said, ” Obviously, expensive digital images of monkeys would improve the world immensely. That’s very incredible.”
He clarified, “I’m used to asset classes like farms where they have output and companies where they make products,” and described crypto as follows.
It is an asset class that is 100% based on some sort of great fool theory that someone is going to pay more for it than I will.
The Greater Fool Theory suggests that there will always be better fools in the market who are prepared to pay a price based on a higher valuation for an already overvalued investment. Eventually, however, when there is no one willing to pay the higher price, asset prices will plummet and investors will end up holding worthless investments.
Gates stressed that “at its core, you have this sort of anonymity to avoid any sort of taxation or kidnapping fees or government rules about things” not involving any assets. He emphasized.
I am not involved in that. I am not long or short on any of them.
The billionaire also claimed that the digital banking initiatives he supports through his charitable foundation are “hundreds of times more efficient” than cryptocurrencies.
The Microsoft co-founder has long been a critic of cryptocurrencies and Bitcoin; in May, he said in a Reddit AMA that he does not hold any cryptocurrency.” I like to invest in things that have a valuable output,” the billionaire explained.” The value of crypto is just what someone else decides to pay for it, so it doesn’t add to society like any other investment.”
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