Updated · Jun 24, 2022
Crypto, NFTs Based on “Greater Fool Theory”, Says Bill Gates
Updated · Jun 16, 2022
Speaking at a climate change event on Wednesday, the Microsoft founder expressed his skepticism about the technology.
Not a Fan
Bill Gates has said that cryptocurrencies and non-fungible tokens (NFTs) are “100 percent based on greater fool theory”. The tech billionaire also made it clear that he holds no positions in blockchain technology.
Gates was speaking at an event on climate change organized by TechCrunch.
“As an asset class, it’s 100% based on the greater fool theory - that somebody’s going to pay more for it that I do,” he said.
The theory - anybody can make money from buying overpriced assets by selling them at an even higher price to someone else, a greater fool.
Gates, who founded Big Tech company Microsoft, said that he prefers to invest in assets with tangible outputs. He also clarified that he does not own any cryptocurrency.
“I don’t own any,” he reiterated. “I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments.”
Gates also sarcastically slammed NFTs - non-interchangeable digital assets that represent ownership of unique items.
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” he quipped, referring to the Bored Ape NFT collection.
The crypto industry has endured a turbulent year so far, losing most of its market capitalization to a market slump.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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