Bill Gates takes aim at NFTs saying that they are 100% based on the greater fool theory, voicing skepticism about these assets and the rest of the crypto space so let’s read more today in our latest crypto news.
Microsoft co-founder Bill Gates dismissed the investments in the crypto and NFT space arguing that the digital assets market is driven by speculation mostly. Gates added:
“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.”
— TechCrunch (@TechCrunch) June 14, 2022
The greater fool theory refers to the idea that one can make money by investing in overvalued assets and selling them for a profit later because there will be always someone that will come along and pay a higher price. Bill Gates takes aim at NFTs and called out people willing to spend huge amounts of money on NFTs casting doubt on their value as investmetns. He added:
“Obviously, expensive digital images of monkeys are going to improve the world immensely.”
He referenced the popular Bored Ape Yacht Club NFT collection which attracted billions and also got a lot of celebrity endorsements. Amid the ongoing crypto crash, the floor price of the BAYC NFT dropped below $100,000 for the first time in a year from the ATH of $429,000, and now the floor price for the collections stands at $83,000. In the meantime, the price of BTC as the industry’s biggest crypto dropped to over $20,000 and posted losses of up to 55% since the start of the year. Most investors are jittery over the latest market events and Gates stressed that he is not involved in crypto in no way possible:
“I’m not long or short any of those things.”
This is not the first time that the Microsoft co-founder trashed crypto. Last month on Reddit, Gates said he doesn’t own any crypto because he likes to invest in things that have valuable output. The value of companies is based on how they make products and the value of crypto is what some people decided that someone else will pay for not adding to society like other investmetns. In February, the billionaire said he didn’t own any BTC as unable to predict how the markets will behave and chose to remain neutral on crypto.
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