Bill Gates says cryptocurrency and NFTs are based on “greater fool theory”
Bill Gates doesn’t seem to be a fan of cryptocurrency or non-fungible tokens (NFTs). During an event in Berkeley, California, Bill Gates said NFTs are “100 percent based on greater fool theory.”
The Microsoft co-founder said he prefers investing in assets with tangible outputs like “farms or factories or a company where they make products.”
“I’m not involved in that. I’m not long or short in any of those things. I like investing in things that have valuable output. The value of crypto is just what someone else decides someone else will pay for it,” Gates said.
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” he mocked, referring to the flagship NFT project, Bored Ape Yacht Club.
It was not the first time that Gates has expressed unhappiness about cryptocurrency and NFT.
“I think people get bought into these manias who may not have as much money to spare. My general thought would be that if you have less money than Elon (Musk), you should probably watch out,” Gates said last year.
Since his 2021 interview, Bitcoin, surging in price last year before peaking at an all-time high, has crashed from $64,000 to trading just above $20,000. NFTs prices, too, have plunged sharply.
Not just Gates, other top investors have expressed skepticism about cryptocurrencies in the past, with Warren Buffet calling bitcoin “rat poison squared.”