Bill Gates Says NFTs Are Based on ‘Greater Fool Theory’
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NFTs, crypto do not get Bill Gates approval.
The tech billionaire dismissed digital assets — particularly NFTs — as “100% based on greater fool theory” while speaking at a climate conference hosted by TechCrunch on Tuesday. The essence of the matter is that the assets will only rise in value if enough investors are willing and able to pay more. Investors are not present, so the assets are worthless.
In early 2021, Gates voiced hesitation about regular investors shelling out fortunes for Bitcoin. “I do think people get bought into these manias who may not have as much money to spare,” said Gates in a 2021 interview. “My general thought would be that if you have less money than Elon [Musk], you should probably watch out. “
At the time, Bitcoin was soaring and would soon reach its peak of $64,000 later that year — before steadily declining and dipping to over half of its value since the start of 2022, trading at a base near $20,000.
When it comes to investing, the Microsoft co-founder still believes in the value of putting money towards assets with tangibility, “like a farm where they have output, or like a company where they make products,” further reiterating his disbelief in the inherent value of digital assets.
As cryptocurrencies continue to fall, Bitcoin was trading at a new low of $20,166 on Wednesday, according to Coinbase data — meaning the currency has fallen about 70% in value since its peak just last year.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.