Don’t expect Microsoft founder Bill Gates to enter the cryptocurrency business, or NFTs for that matter, anytime soon. Gates touched on the topic during an appearance at TechCrunch Sessions: Climate 2022 event and branded crypto and non-fungible tokens as “100 percent based on greater fool theory.”
In terms of finances, the “greater fool theory” is based on buying an overvalued asset in hopes that it can be later sold for an even higher price to a “greater fool.” This is sustainable as long as there are enough “greater fools” who are willing to pay more each time.
Gates started by making a dig at the popular NFT collection “Bored Ape Yacht Club,” saying that “expensive digital images of monkeys are going to improve the world immensely.” He then explained that he is “used to asset classes, like a farm where they have output, or like a company where they make products.”
One of the world’s richest people continued by making the “greater fool theory remark” before saying that he isn’t involved in crypto or NFTs and that he is “not long or short” on either.
The crypto market is currently going through a rough period caused by a massive sell-off as investors are turning to more traditional assets. The world’s leading cryptocurrency Bitcoin has lost close to 35 percent of its value in the last month and is currently trading at around $20K. This is the lowest Bitcoin has been since late 2021.
