Kevin Helms
An Austrian economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Crypto is 100% based on Greater Fool Theory – ‘I’m not involved in it’ – Featured Bitcoin News
Microsoft co-founder Bill Gates says crypto is an asset class that is 100% based on Greater Fool Theory. The billionaire also mocked the Bored Monkey NFTs and said: “It is clear that expensive digital images of monkeys are going to improve the world enormously.”
Bill Gates on Crypto and NFT
Microsoft co-founder Bill Gates talked about cryptocurrency and non-fungible tokens (NFTs) at this year’s Techcrunch Sessions: Climate 2022 event on Tuesday.
Referring to the Bored Monkey Yacht Club NFT, Gates said sarcastically: “It’s clear that expensive digital images of monkeys are going to improve the world tremendously. It’s so amazing.”
He emphasized: “I am used to asset classes such as a farm where they have production or a company where they make products,” and described crypto as:
An asset class that is 100% based on a kind of Greater Fool Theory that someone will pay more for it than me.
The Greater Fool Theory suggests that there will always be a bigger idiot in the market who is willing to pay a price based on a higher valuation for an already overvalued investment. But in the end, when there is no one left who is willing to pay a higher price, asset prices can fall sharply, leaving investors holding worthless investments.
Gates stressed that he is not involved in any asset that “at heart has a kind of anonymity that you avoid taxes or any kind of state rules on kidnapping charges or things.” He emphasized:
I’m not involved in that. I’m not tall or short in any of those things.
The billionaire also claimed that the digital banking efforts he supports through his philanthropic foundations are “hundreds of times more effective” than cryptocurrencies.
Microsoft’s co-founder has long been a critic of cryptocurrency and bitcoin. In May, he said during a Reddit AMA that he does not own any cryptocurrency. “I like to invest in things that have valuable production,” the billionaire explained. “The value of crypto is just what another person decides that someone else will pay for it, so not adding to society like other investments.”
What do you think of Bill Gates’ comments? Let us know in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, lev radin
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