- “As an asset class, it’s 100% based on the greater fool theory,” says Gates.
- Gates had previously criticized crypto for its lack of value.
Bill Gates denies his involvement in NFTs and crypto, stating that he doesn’t believe in the hype. The billionaire was speaking about digital assets during the TechCrunch sessions of the Climate 2022 conference on Tuesday.
Resorting to sarcastic comments, Gates criticized the Bored Ape Yacht Club NFTs, which have harnessed massive hype and celebrity appeal, with Snoop Dogg, Eminem, and Shaq hopping on the bandwagon.
Obviously, expensive digital images of monkeys are going to improve the world immensely.
Gates continued his conversation about cryptocurrencies and NFTs, adding that it was a market driven by pure 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.”
The greater fool theory is a practice wherein people buy assets based on the belief or hope that someone else would pay more for the asset later on. When a point is reached where buyers are no longer willing to pay a better price, the demand for the asset plummets, leaving the holder with nothing.
Regarding cryptocurrency in general, Gates has always been a vocal critic and once spoke about how they lack real value. The billionaire philanthropist believes that crypto’s value is determined by the willingness of others to pay a certain amount. He argues that crypto is nothing but the hype created by users.
Meanwhile, the crypto world is on its continuous path to a bloodbath as major cryptos are still trading in the red. The floor prices of NFTs have also taken a significant toll as the price of Ethereum has also taken a hit.
