FX.co ★ Bill Gates: crypto and NFT “100% based on greater fool theory”

Bill Gates, one of the founders and former biggest shareholder of Microsoft, has recently voiced his opinion on crypto and NFT.

Speaking at a TechCrunch talk on climate change, the billionaire entrepreneur described cryptocurrencies and NFTs as “100% based on greater fool theory,” referring to the hyped NFT Bored Ape Yacht Club.

The idea of the “greater fool theory” suggests that overvalued assets rise in price when there are enough investors willing to pay hefty sums for them.

NFTs, or non-fungible tokens, can’t be exchanged for one another. They are often shown as a way to prove ownership of a digital asset, for example, art collectibles.

NFTs are broadly believed to be much-hyped and even harmful to the environment as crypto mining requires a substantial amount of energy. Many NFTs are based on the Ethereum blockchain, the second-largest token after bitcoin.

Bill Gates says he has no interest in the crypto industry and is neither long nor short on crypto and NFTs.

Instead, he prefers asset classes like farms where they have output or companies that make products.