Crypto
Bill Gates Believes Crypto and NFTs Are Based on the Greater Fool Theory
“As an asset class, it’s 100% based on the greater fool theory,” Bill Gates said.
The American business magnate and Co-Founder of Microsoft – Bill Gates – blasted non-fungible tokens (NFTs) for not providing any use-cases to society. In his view, cryptocurrencies and digital collectibles are based on “the greater fool theory,” and people should be cautious when dealing with them.
Criticizing Crypto Once Again
During a recent climate conference, the American billionaire Bill Gates reiterated his anti-crypto stance. He sarcastically noted that non-fungible tokens such as “digital images of monkeys are going to improve the world immensely.”
With his comments, Gates was most probably referring to the Bored Ape Yacht Club (BAYC) – a popular NFT collection built on the Ethereum blockchain depicting different caricatures of monkeys. Over the past several months, the collectibles became a point of interest to numerous celebrities like Madonna, Neymar, and Serena Williams who spent hundreds of thousands of dollars to purchase some of them.
Gates also gave his explanation of how the cryptocurrency industry works as he views it as a typical example of “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.”
According to the concept, people ignore price valuations, earning reports, and other vital information only to sell their products to a “fool” willing to pay more than the owner had previously spent. Once the market runs off of “fools,” prices crash, and numerous investors are left with overpriced assets that no one wants to buy.
“As an asset class, it’s 100% based on the greater fool theory,” Bill Gates said.
The American business magnate and Co-Founder of Microsoft – Bill Gates – blasted non-fungible tokens (NFTs) for not providing any use-cases to society. In his view, cryptocurrencies and digital collectibles are based on “the greater fool theory,” and people should be cautious when dealing with them.
Criticizing Crypto Once Again
During a recent climate conference, the American billionaire Bill Gates reiterated his anti-crypto stance. He sarcastically noted that non-fungible tokens such as “digital images of monkeys are going to improve the world immensely.”
With his comments, Gates was most probably referring to the Bored Ape Yacht Club (BAYC) – a popular NFT collection built on the Ethereum blockchain depicting different caricatures of monkeys. Over the past several months, the collectibles became a point of interest to numerous celebrities like Madonna, Neymar, and Serena Williams who spent hundreds of thousands of dollars to purchase some of them.
Gates also gave his explanation of how the cryptocurrency industry works as he views it as a typical example of “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.”
According to the concept, people ignore price valuations, earning reports, and other vital information only to sell their products to a “fool” willing to pay more than the owner had previously spent. Once the market runs off of “fools,” prices crash, and numerous investors are left with overpriced assets that no one wants to buy.
