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Bill Gates compares cryptos and NFTs to "greater fool theory"

Bill Gates compares cryptos and NFTs to "greater fool theory"

Microsoft co-founder Bill Gates believes cryptos and NFTs are “greater fool theory” investments, in a sarcastic rant stating “expensive digital images of monkeys would surely improve the world.” 

Speaking at this year’s TechCrunch Sessions: Climate 2022, Gates reiterated his scepticism of cryptocurrencies and the digital asset space, drawing on the greater fool theory to talk about why he does not support cryptocurrencies or NFTs.

“I’m used to asset classes where they have output, or like a company where they make products," Gates said, adding that he has no involvement with cryptos and will  “not long or short any of those things."

As the former world’s richest man, Bill Gates might know a thing or two about money, however despite institutional investment of cryptocurrency remaining high, Bill Gates maintains his dismissal of digital assets, drawing on the greater fool theory - which basis itself on the notion that there will always be people willing to pay for overvalued assets, commenting specifically on NFTs and referring to the Bored Ape Yacht Club how “expensive digital images of monkeys would surely improve the world.” 

“investors only make profits by selling them to a greater fool.”

In a February interview with Bloomberg, Gates reinforced his anti-bitcoin stance noting“if you have less money than Elon, you should probably watch out”.

While Gates has dismissed digital assets, he is supportive of digital banking - noting they are multiple times more effective than digital currencies. His organisation - The Bill and Melinda Gates Foundation has provided financial aid for several digital banking initiatives which provide assistance to the unbanked. 

The Microsoft co-founder spoke on the turbulent economic conditions, saying how economic conditions are “changing probably as rapidly as I’ve ever seen in my lifetime,”

Gates opinions come amid a stormy time for the crypto market, and while he may not be supportive of cryptocurrencies , his sarcastic remarks are unlikely to go down well in the crypto community.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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