NFTs and Crypto Are ‘100%’ Based on Greater Fool Theory
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 notion that overvalued assets will keep going up because there are enough people willing to pay high prices for them.
He joked that “expensive digital images of monkeys” would “improve the world immensely.”
Mr. Gates, who for years has lampooned cryptocurrencies, said Tuesday at a TechCrunch event in Berkeley, Calif.,
that people bought cryptocurrencies and NFTs based on the idea that, no matter its price, it could be sold for higher because “somebody’s going to pay more for it than I do.”
He said that he wasn’t involved in “any of those things” either long or short. Other wealthy investors and executives...
including Warren Buffett and Jamie Dimon, have also expressed skepticism about cryptocurrencies. Mr. Buffett once called bitcoin “rat poison squared.”
NFTs, or nonfungible tokens, are digital proofs of a purchase for goods like art, digital music and sneakers. After surging in popularity, their demand appears to be flatlining recently.
Rising interest rates have crushed risky bets across the financial markets—and NFTs are among the most speculative.
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