There seems to be no end to the bad news for crypto and NFT bros out there. If the massive crash and the ensuing memes weren’t enough, Microsoft co-founder and one of the richest people in the world, Bill Gates has come out and said that cryptocurrencies and NFTs are “100%” based on the greater fool theory.”
For those who are unaware, the Greater Fool Theory is described as “an idea that, during a market bubble, one can make money by buying overvalued assets and selling them for a proﬁt later, because it will always be possible to ﬁnd someone who is willing to pay a higher price.”
During a recent TechCrunch event, the 66-year-old billionaire showed concern that people are buying overvalued assets because they think there is always someone else who’s willing to pay for them. He even made joked about the (in)famous Bored Ape Yacht Club, saying “expensive digital images of monkeys would improve the world immensely.”
When asked if he himself has invested any of his assets in the crypto and NFT market, the billionaire replied by saying that he wasn’t involved in “any of those things.” Surprisingly, Gates isn’t the only billionaire to have shown scepticism about the crypto bubble. Investor Warren Buffet once referred to Bitcoin as “rat poison squared.”
This isn’t the first time Gates has publicly spoken against the current trend. The fourth-richest person in the world replied during a Reddit Q&A session saying, “I like investing in things that have valuable output,” further adding “The value of crypto is just what some other person decides someone else will pay for it.”
Both NFTs and cryptocurrencies saw a rapid rise in popularity over the last few years, with celebrities like Snoop Dogg, Jimmy Fallon, Neymar and more investing hundreds of thousands of dollars on essentially what can be described as digital proof of purchase of art, music, sneakers etc. Somewhat equivalent to holding on to an exclusive digital image of a product.
However, the market recently took a big nose dive essentially bursting the “crypto and NFT bubble.” This has sent shockwaves across the financial sectors, with many investors losing millions of dollars of investment. We are also sure that Mr Gates’s comment isn’t helping the situation.