Former world wealthiest man Bill Gates has dismissed NFTs as “100 percent based on greater fool theory”.
FYI: Greater Fool Theory is the financial concept that even overpriced assets can make money as long as you find a bigger idiot to sell them to.
Speaking at an event on climate change hosted by TechCrunch, Gates said he preferred investing in assets with tangible outputs, like farms or factories, “or a company where they make products,”. He said that he held no position in cryptocurrencies or NFTs. “I’m not involved in that. I’m not long or short in any of those things,” said Gates. He went further to suggest that he was also suspicious of assets designed to “avoid taxation or any sort of government rules.”
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” quipped Gates, referring to the flagship NFT project, Bored Ape Yacht Club.
Bill Gates Has Expressed Concern Over Cryptos and NFTs in The Past
It’s not the first time Gates has expressed skepticism about cryptocurrencies. In an interview from February 2021, he worried about the dangers of regular investors buying into Bitcoin. He said this is even worse so when the cryptocurrency’s value was so volatile and could be tanked on the basis of a tweet from a prominent investor, like Elon Musk.
“I do think people get bought into these manias who may not have as much money to spare,” said Gates in 2021. “My general thought would be that if you have less money than Elon, you should probably watch out.”
Gates’ warnings about volatility were spot on. When he was speaking in 2021, Bitcoin was surging in price. In fact it would eventually reach a height of $63,000 in April 2021. It would then slump dramatically. Then it rose again to an all-time high of more than $64,000 in November 2021.
Since then, the price of Bitcoin has crashed once again, and at the time of this writing is trading just above $20,000. This dramatic fall is part of a wider set of convulsions rocking the crypto world, after the collapse of so-called “stablecoin” Terra in May and the ongoing failure of crypto lending platform Celsius.
Similarly, prices for NFTs have also fallen sharply. Some of the biggest projects, like the aforementioned Bored Ape Yacht Club, have more than halved in value. At the same time, trading volume has increased, as buyers seek to snap up digital assets at rock-bottom prices. Unlike Gates, perhaps, they may be subscribers to the greater-fool theory of NFTs — confident that there are more idiots out there, if they can only find them.
What’s Your Take on This?
What is your opinion on this? Do you agree with Bill Gates on his greater fools theory of NFTs and cryptos? Do you think that Cryptos are a scam? In your opinion, do you believe that the price of Cryptos will rise again?
But it is good to know that Bill Gates has been consistent on his opinion on cryptos and NFTs. He has not allow the fluctuation in prices to affect his opinion of NFTs. And when a man like Gates gives an opinion on investment it should ordinarily call for a rethink.
However, it remains just what it is – Bill Gates’ opinion and nothing more than that. Only time will tell if he is justified or if cryptos have come to stay. So as we always advise, if you must invest in crypto or NFTs do your own research. And also invest with an amount you can afford to lose. This advice is important as we continue to monitor the trends. So until there are more history about Cryptos and NFTs no one can say anything definite about the future.
Once again, trade with caution.