Monday, June 27, 2022
HomeCrypto NewsBill Gates claims NFTs are 100 percent based upon greater fool theory

Bill Gates claims NFTs are 100 percent based upon greater fool theory

Bill Gates, a tech billionaire, has dismissed NFTs “100% based on greater Fool Theory” — the financial theory that even high-priced assets can still make money if you find a bigger fool to sell them.

Gates spoke at a TechCrunch event about climate change. He stated that he prefers to invest in tangible outputs like factories or farms, or companies where products are made, and that he did not hold any position in NFTs or cryptocurrencies. “I’m not involved with that. Gates stated that he is not involved in either of these things. He also suggested that he was suspicious of assets intended to “evade taxation or any type of government rules.”

Gates said, “Obviously, costly digital images of monkeys will improve the world tremendously,” referring to the flagship NFT project Bored Ape Yacht club.

Gates is not the only one to express doubts about cryptocurrency. He expressed concern about regular investors purchasing Bitcoin in an interview that he did from February 2021,, particularly when the cryptocurrency’s price was so volatile.

Gates stated in 2021., “I think people get sold into these manias when they may not have as many money to spare.” “My general opinion is that you should be cautious if you have less than Elon.

Gates’ warnings regarding volatility were spot-on. When he was speaking in 2021, Bitcoin was surging in price and would reach a height of $63,000 in April that year. It would then slump dramatically, before rising again to an all-time high of more than $64,000 last November.

Since then, the price of Bitcoin has crashed once again, and at the time of writing is trading just above $20,000. This dramatic drop is part of a larger set of convulsions that rock the crypto world after the May collapse of Terra, the so-called stablecoin, and the continuing failure of Celsius crypto lending platform.

NFT prices have also dropped sharply. The value of some of the most important projects, such as the Bored Ape Yacht Club mentioned, has more than halved. As buyers look for digital assets at bargain prices, the trading volume has also increased. They may have subscribed to the greater-fool theory about NFTs like Gates. If they could only find more idiots, they would be confident.

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Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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