Billionaire Bill Gates believes that cryptocurrencies and NFT are 100% based on “the theory of more fools”

Billionaire Bill Gates believes that cryptocurrencies and NFT are 100% based on “the theory of more fools”

Billionaire Bill Gates has made a statement criticizing cryptocurrencies as well as digital assets (NFT) as a scam.

Recently, CNBC reported, speaking at a TechCrunch climate change conference in California, the USA on June 14, billionaire Bill Gates called cryptocurrencies and NFT 100% based on “the theory of fools.””.

The “Greater Fool Theory” implies that overvalued assets will rise further as enough investors are willing to pay more for them. The predecessors will make a profit by selling to more idiots.

But this multi-level scam speculative market will eventually collapse when no one is willing to buy at too high a price. At that time, everyone was hoping to sell to make a profit or at least recover some of the capital, thereby pushing the asset price down to worthless levels.

He joked that “expensive digital images of monkeys” would “make the world a lot better”. The monkeys here are from the NFT Bored Ape Yacht Club collection.

NFTs are often seen as a way to demonstrate ownership of digital assets, such as art or sports collection. But critics say they are overblown and potentially harmful to the environment because cryptocurrency mining is highly power-hungry. Many NFTs are built on the network behind Ethereum, the world’s second-largest token.

“I’m familiar with asset classes like a farm where the output is, or a company that makes a product,” he continued. With crypto, “I don’t participate”.

Billionaire Bill Gates believes that cryptocurrencies and NFT are 100% based on “the theory of more fools”

Billionaire Bill Gates (Photo: Internet).

Earlier, Ethereum co-founder Vitalik Buterin expressed a negative attitude towards the famous NFT Bored Ape Yacht Club collection. In an interview with Time, he said that flaunting wealth is ingrained in the subconscious of crypto investors, typically boasting of NFT Bored Ape Yacht Clubs.

“The danger is that you have $3 million worth of ape NFTs. It’s becoming a form of gambling,” Vitalik Buterin told Time.

As for billionaire Bill Gates, he has repeatedly criticized cryptocurrencies. In 2021, he argued with billionaire Elon Musk about the risks and environmental harm of Bitcoin mining. In May 2022, the Microsoft founder also criticized the digital currency as having no real value compared to the price being traded on the market.

“The transactional value of cryptocurrencies is currently based only on the hope that the latter will pay more and not contribute anything to society like other investment channels,” Bill Gates replied on Reddit.

According to data from CoinMarketCap, on the morning of June 14 (Vietnam time), the largest digital currency in the market had a big sell-off, causing the price to quickly lose the $21,000 mark, plunging to $20,952 per dong.

The drop in Bitcoin caused the portfolios of funds, companies, and many countries holding Bitcoin to be “flooded” in the red. Of which, MicroStrategy lost about $1.2 billion in nominal terms.

Since the beginning of the year, the price of Bitcoin has dropped by more than 50% and speculators have completely suffered because this market does not have a regulatory body and limits protection for players. A series of cryptocurrency exchanges such as Coinbase, Crypto.com, and BlockFi have had to lay off many employees to reduce costs. The market’s fall also caused countless cryptocurrency projects like Celsius or LUNA to be in crisis.

In addition to cryptocurrencies, some NFT digital asset platforms such as Bored Ape Yacht Club also suffered great losses when fearful speculators withdrew. CoinMarketCap data shows that the NFT Index, which measures eight NFT-related

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