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Bill Gates claims that NFTs are “100% based on greater fool theory”

“I’m not long or short in any of those things,” Gates remarked

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Bill Gates claims that NFTs are "100% based on greater fool theory"

Bill Gates claims that NFTs are “100% based on greater fool theory”

NFTs, according to Bill Gates, are “100% based on greater fool theory”

Bill Gates, the tech billionaire, has slammed NFTs as “100% based on greater fool theory”. The “greater fool theory” is a financial concept that even overvalued assets may earn money if you find a bigger idiot to sell them to.

Gates stated he preferred investing in assets with real outputs, such as farms or factories, “or a firm where they manufacture stuff. Further saying that he had no investment in cryptocurrencies or NFTs, speaking at a TechCrunch event on climate change. “I’m not involved in that.  I’m not long or short in any of those things,” Gates remarked, implying that he was also wary of assets that were intended to “avoid taxation or any sort of government rules.”

“Obviously, pricey digital images of monkeys will greatly enhance the world,” Gates said, pointing to the NFT’s flagship project, the Bored Ape Yacht Club.

Bill Gates has been sceptical about cryptocurrencies in the past as well

This isn’t the first time Gates has been sceptical about cryptocurrency. In a February 2021 interview, he expressed concern about the risks of ordinary investors buying Bitcoin. Especially because the cryptocurrency’s value was so unpredictable and might be wiped out by a tweet from a renowned investor like Elon Musk.

In 2021, Gates said, “I do think individuals get caught into these manias who may not have as much money to spare. My general attitude is that if you don’t have as much money as Elon, you should probably be careful.”

Gates’ predictions concerning volatility were correct. When he spoke in 2021, Bitcoin was soaring in value, reaching a high of $63,000 in April of that year. It would subsequently plummet drastically before rebounding to an all-time high of more than $64,000 in November.

Since then, the price of Bitcoin has plummeted once again, and it is currently trading slightly around $20,000. After the collapse of the so-called “stablecoin” Terra in May and the ongoing failure of crypto lending site Celsius, this steep drop is part of a larger set of convulsions hitting the crypto sector.

Similarly, NFT prices have plunged dramatically. Some of the more important ventures, such as the aforementioned Bored Ape Yacht Club, have seen their value sink by more than half. Simultaneously, trade activity has surged as buyers seek for digital assets at bargain prices. Perhaps, like Bill Gates, they believe in the greater-fool theory of NFTs, believing that there are more fools out there if only they could discover them.

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