Tech billionaire Bill Gates has not cut words on NFTs and cryptocurrencies, which he calls “100% based on the biggest fool’s theory”, a financial concept that even overvalued assets can make money on condition of finding a bigger fool to sell them to .
” It is obvious that expensive digital images of monkeys will enhance the world in a big way. Bill Gates joked this week. with reference to the NFT Bored Ape Yacht Club project. The billionaire attended a question-and-answer session at a Tech Crunch event dedicated to climate change and technology, where he reaffirmed his stance on cryptocurrencies and NFTs.
Despite the popularity of the NFTs, Bill Gates, co-founder of Microsoft, do not have a very good opinion about it. It sees non-fungible tokens and cryptocurrencies as assets based on ” greatest fool theory For those who do not know, the biggest fool theory is an approach that claims one can benefit from an overvalued asset as long as there is someone willing to buy it for more than what. you have paid.In the end, the market will be flooded and there will be no more “crazy people” buying into the wave of profitability of this asset.In other words, these overvalued assets increase in value if enough people think they are worth something.
Bill Gates considers cryptocurrencies and NFTs to be scams
Instead of spending its money on volatile digital assets,The billionaire philanthropist said he prefers to invest in assets with tangible resultssuch as farms or factories, ” or a company where products are manufactured “, and that he had no positions in cryptocurrencies or NFTs.
Although NFTs have historically been compared to the art market, where investment increases in value over time and cultural appreciation, Reality seems closer to a standard pyramid scheme. The billionaire adds that these digital assets were designed to ” avoid taxation or any form of government regulation in addition to being a huge risk for those who invest. This is not the first time the billionaire has taken up crypto assetsas he regularly reiterates that digital currencies do not have the slightest value.
The NFT and cryptocurrency markets are collapsing
Gates’ comments come at a time when financial markets around the world are in turmoil, and Bitcoin, which was born out of the recession in 2008, was not spared. In fact, this “biggest fool” theory has worked well for cryptocurrency and NFT investors and traders, until that was no longer the case a few weeks ago.
We have seen that NFT searches on Google have recently collapsed by 75%, or that thousands of NFTs by artist Gustav Klimt are now worth almost nothing. The NFT bubble is, predictably, bursting after the latest market correction. The floor price of a Bored Ape Yacht Club, as Bill Gates mentioned in the interview, recently dropped to its lowest level since August last year, which access costs have fallen by almost 80% in two months. Not surprisingly, this does not fall into good soil with those who have invested astronomical sums for their monkey images.
Despite the crisis, more companies and personalities continue to believe in the potential of NFTs. Nike recently sold a picture of a shoe for $ 125,000, and eBay also launched a collection of NFTs dedicated to athletes.
The NFT market is not the only one that is in bad shape as the cryptocurrency market is also watching the price of its major currencies is falling unchecked. Bitcoin had reached a record high of $ 69,000 by November 2021, but since then, the most famous cryptocurrency in the world has lost two thirds of its value drops about $ 20,000 this week. Bitcoin in particular may soon fall below $ 18,000, and Ethereum has also reached levels not seen for several years.