Microsoft co-founder Bill Gates says crypto is an asset class 100% based on the Greater Fool Theory. The billionaire also ridiculed Bored Ape NFTs, stating, “Obviously, expensive digital images of apes are going to make the world a better place immensely.”
Bill Gates on crypto and NFTs
Microsoft co-founder Bill Gates spoke about cryptocurrency and non-fungible tokens (NFTs) at this year’s Techcrunch Sessions: Climate 2022 on Tuesday.
Referring to the Bored Ape Yacht Club’s NFTs, Gates sarcastically said, “Obviously expensive digital images of apes are going to improve the world immensely. That’s so incredible.”
He clarified, “I’m used to asset classes like a farm where they make products or a company where they make products,” describing crypto as follows:
An asset class that’s 100% based on some kind of Greater Fool Theory that someone will pay more for it than me.
The Greater Fool Theory states that there will always be a bigger fool in the market willing to pay a price based on higher valuation for an already overvalued investment. However, when no one is willing to pay a higher price, asset prices can fall sharply, leaving investors with worthless assets.
Gates emphasized that he doesn’t invest in assets that “at their core have a kind of anonymity that you avoid taxes or government regulations about kidnapping fees or other things.” He emphasized:
I am not involved in that. I’m not long or short on any of these things.
The billionaire also claimed that the digital banking efforts he supports through his philanthropic foundations are “hundreds of times more efficient” than cryptocurrencies.
The Microsoft co-founder has long been a critic of cryptocurrency and bitcoin. In May, he said during a Reddit AMA that he doesn’t own any cryptocurrency. “I like to invest in things that have a valuable output,” explained the billionaire. “The value of crypto is just what another person decides someone else will pay for it, so not contributing to society like other investments.”
What do you think of Bill Gates’ comments? Let us know in the comment section below.
photo credit: Shutterstock, Pixabay, Wiki Commons, Lev Radin
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