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Microsoft Corp. co-founder Bill Gates said he thinks cryptocurrencies and NFTs are “100%” based on the greater fool theory.
The 66-year-old billionaire was referring to the idea that assets with excessive valuations will continue to rise in value because there are enough buyers prepared to pay high prices for them. He jokingly said that “expensive digital images of monkeys” would “improve the world immensely.”
At a TechCrunch event on Tuesday in Berkeley, California, Mr. Gates, who has long mocked cryptocurrencies, claimed that individuals purchased cryptocurrencies and NFTs with the expectation that, regardless of their purchase price, “somebody’s going to pay more for it than I do.”
He claimed that long or short, he wasn’t involved in “any of those things.” Warren Buffett and Jamie Dimon are two other well-to-do businessmen and investors who have expressed doubt about cryptocurrency. Bitcoin was once referred to by Mr. Buffett as “rat poison squared.”
NFTs, or nonfungible tokens, are digital receipts for items like digital music, footwear, and artwork. Their popularity has increased, but presently there seems to be a standstill in demand. Risky bets have been crushed by rising interest rates across the board, and NFTs are among the most speculative.
Mr. Gates looked to be commenting on a monkey from the Bored Ape Yacht Club NFT collection when he referred to NFTs. “like a farm where they have the output or a company where they make products.” he said when asked which asset types he favored.
He made these remarks as the price of Bitcoin and other cryptocurrencies fell precipitously in recent days amid a generalized worldwide market collapse, wiping out a large portion of the gains made at the start of the pandemic when a rush of investors began betting on digital currencies.
On Friday, the price of Bitcoin was a little above $21,000. The cryptocurrency has experienced the fourth biggest selloff in its 13-year history after losing more than two-thirds of its value after reaching a record high in November.
According to the Bloomberg Billionaires Index, Mr. Gates has a net worth of $113 billion, making him the fourth richest person in the world. In a Reddit Q&A last month, he stated that he didn’t possess any cryptocurrencies.
