Multi-billionaire Bill Gates has been very critical of the NFT market, saying that the whole concept “100% based on the Greater Fool Theory”. We’re talking about a popular financial theory that says overvalued assets can be made as long as there are naïve citizens to sell them to.
At a climate change event hosted by TechCrunch, Gates said he prefers to invest in assets with “measurable results,” like farms or factories or companies that make specific products.
Gates said he does not invest in any form of cryptocurrency or NFTs, adding that he is wary of assets created to evade taxes or circumvent government regulations. “Obviously expensive digital images of monkeys will greatly improve the world”‘ Gates quipped, referring to the NFT project’s ‘flagship’ Bored Ape Yacht Club.
This isn’t the first time Gates has expressed skepticism about cryptocurrencies and cryptoassets in general. In a February 2021 interview, he spoke about the dangers of regularly investing in Bitcoin, especially when the price of the cryptocurrency is so volatile that it could collapse on a single statement from a citizen like Elon Musk. Gates said that if a potential investor has less money than Musk, they should be careful with such investments.
Since Gates first commented, Bitcoin has indeed seen some serious ups and downs, now its price is just over $20,000. And that’s just part of the crisis in the crypto world, which was rocked by the collapse of “stablecoin” Terra in May and other events that could erode confidence in blockchain assets in general.
It is also known that NFT prices have fallen noticeably. Some big projects like Bored Ape Yacht Club have lost more than half of their value, while trading volume has only increased – many investors among professionals and amateurs are in a hurry to buy crypto assets at bargain prices and are counting on their growth in the future .