Bill Gates says NFTs are ‘100 percent based on the theory of bigger fools’
Technology billionaire Bill Gates has dismissed NFTs as “100 percent based on bigger fooling theory” – the economic concept that even overpriced assets can make money as long as you find a bigger idiot to sell them to.
Speaking at a climate change event hosted by TechCrunch, Gates said he preferred to invest in assets with concrete results, such as farms or factories, “or a company where they make products,” and that he had no position in cryptocurrencies or NFTs. ‘I’m not involved in that. I’m not tall or short in any of these things, “Gates said, suggesting he was also suspicious of assets designed to”[ads1]; avoid taxation or any form of government regulation. “
“It’s clear that expensive digital images of monkeys are going to greatly improve the world,” Gates said, referring to the flagship NFT project Bored Monkey Yacht Club.
This is not the first time Gates has expressed skepticism about cryptocurrencies. In an interview from February 2021, he was concerned about the dangers of ordinary investors buying into Bitcoin, especially when the value of the cryptocurrency was so volatile and could be refueled on the basis of a tweet from a prominent investor, such as Elon Musk.
“I think people are being bought into these maniacs who may not have that much money left over,” Gates said in 2021. “My general thought would be that if you have less money than Elon, you should probably take care of yourself.”
Gate’s warnings about volatility were spot on. Speaking in 2021, Bitcoin rose in price and would reach a high of $ 63,000 in April of that year. It would then fall dramatically, before rising again to a record high of more than $ 64,000 in November last year.
Since then, the price of Bitcoin has crashed once again, and at the time of writing is trading just over 20,000 dollars. This dramatic fall is part of a broader set of convulsions that are shaking the cryptocurrency world, following the collapse of the so-called “stablecoin” Terra in May and the ongoing failure of the cryptocurrency lending platform Celsius.
Similarly, the prices of NFTs have also fallen sharply. Some of the largest projects, such as the aforementioned Bored Ape Yacht Club, have more than halved in value. At the same time, trading volume has increased, as buyers seek to intercept digital assets at bottom prices. Like Gates, perhaps, they can be subscribers to the more-fool theory of NFTs – sure there are more idiots out there, if they can just find them.
