Bill Gates Calling out – NFTs just a fool’s theory!!
Bill Gates criticizes cryptos and NFTs, claiming that the asset class is “100 percent based on some sort of Greater Fool Theory.”
Bill Gates, the co-founder of Microsoft, has reaffirmed his stance as a crypto atheist. At the recent ‘TechCrunch Sessions: Climate 2022,’ the billionaire took a swipe at cryptocurrencies and non-fungible tokens, stating that he had no faith in the asset class.
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Cryptocurrencies, according to Bill Gates, are “100% predicated on some form of Greater Fool Theory.” According to the Greater Fool Theory, the market will always have foolish investors buying an inflated asset.
“Company worth is determined by how well they create amazing things. Crypto’s worth is determined by what someone else is willing to pay for it, rather than adding to society like conventional assets,” he explained.
While discussing the high pricing of Non-Fungible Tokens, Bill Gates also ripped into the Bored Ape Yacht Club (BAYC) (NFTs). “Obviously, pricey digital photos of monkeys will greatly benefit the world,” he sarcastically observed.
The billionaire said he is familiar with traditional asset classes and investments, mentioning a “farm with output” or a “business that makes products” as examples.
When queried about cryptocurrency, he acknowledged that he is not part of the asset class. “I’m not the owner of any.” “I want to put my money into items that have a high return on investment,” he explained. His remarks resembled those of Warren Buffett, the chairman, and CEO of Berkshire Hathaway and a renowned investor.
Warren Buffett, who is known as the Oracle of Omaha, reportedly declared that he would not buy the whole quantity of Bitcoin, even if it were provided to him for $25. “It doesn’t create anything,” Buffett explained. “What would I do with it?” says the narrator. In any case, I’d have to sell it back to you. “It’s not going to help,” he added.
Also, read – 12 Times NFTs Truly Changed Lives
This isn’t the first time Bill Gates has used phrases like “crypto” to describe the technology. He has been a vociferous opponent of the asset class. “As an asset class, you’re not creating anything, and so you shouldn’t expect it to go up,” Gates stated in an interview with CNBC in 2018, alongside Warren Buffett and Charlie Munger. It’s a classic case of the “greater fool theory” at work. I’d cut it if there was a simple way to accomplish it.”
“What’s the one digital innovation the world would be better off without?” Bill Gates was also asked at the time. “The way cryptocurrencies operates today allows for certain illicit actions,” he quickly responded. It’d be nice if we could get rid of that.”
It should be noted, however, that the Microsoft CEO is not opposed to the underlying blockchain technology. Microsoft patented a crypto-mining technique in May 2020 that uses the energy consumed in physical activities, brain waves, and even body heat to perform online tasks like searches and chatting with a chatbot. The patent stated, “A user can solve the computationally demanding issue unconsciously.”
Bill Gates has also issued veiled cautionary statements to bitcoin investors. Gates was asked to comment on crypto price changes based on Elon Musk’s tweets in an online interview with Bloomberg in February 2021. “Elon has gobs of money, and he’s very sophisticated, so I don’t worry about his bitcoin going up or down at random,” Gates said emphatically. People who may not have as much money to spare are drawn into these manias. “If you don’t have as much money as Elon, you should probably be careful,” he had said at the time.