These digital asset trends are “100% based on the larger fool theory,” the Microsoft co-founder told a TechCrunch conference Tuesday, citing the notion that investors can make money off worthless or overvalued assets while people are willing are to bid them higher.
Gates added that he is “not long or short” crypto. And he ridiculed Bored Apes NFTs, joking that “expensive digital images of apes” will “improve the world immensely.”
Instead, Gates said he prefers investing old-fashioned.
“I’m used to asset classes like a farm where they produce or like a company where they make products,” he said.
His comments come as Bitcoin and other cryptocurrencies plummet. Bitcoin reached an all-time high of $69,000 in November 2021. Since then, the world’s most valuable cryptocurrency has lost two-thirds of its value, falling below $23,000 on Tuesday. Since Friday, it has lost about 25% of its value.
Crypto exchange Coinbase announced that it is laying off 18% of its employees as the digital currency market continues to collapse.
Gates has previously doubted crypto. In a 2021 interview with Bloomberg, Gates said that investing in Bitcoin was one thing for Elon Musk and Tesla, but that doesn’t mean average investors should follow suit.
“I do think people get hooked on these lunatics who might not have that kind of money,” Gates said. “So I’m not bullish on bitcoin.”