Bill Gates states Crypto, NFTs are shams ‘based on greater-fool theory’

Bill Gates is a computer programmer and entrepreneur from the United States who cofounded Microsoft Corporation, the world’s largest personal computer software company. Bill Gates is not a fan of cryptocurrencies or non-fungible tokens.

The billionaire Microsoft co-founder described the phenomena as “100% based on greater fool theory,” referring to the premise that overvalued goods will rise in price when enough investors are prepared to pay more for them, at a TechCrunch discussion on climate change on Tuesday.

Gates said that “expensive digital images of monkeys” would “improve the world immensely,” referring to the highly anticipated Bored Ape Yacht Club NFT collection.

This is not the first time that Bill Gates has criticized crypto. He has criticized crypto numerous times, last year, he had a heated debate with Elon Musk about whether Bitcoin is too dangerous for individual investors and the environmental impact of mining coins.

Gates stated that he prefers old-fashioned investing. “I’m used to asset classes, like a farm where they have output, or like a company where they make products,” he said. His remarks come as the price of bitcoin and other cryptocurrencies declines. In November 2021, Bitcoin reached an all-time high of $69,000. The world’s most expensive cryptocurrency has lost two-thirds of its value since then, falling below $23,000 on Tuesday. Since Friday, it has lost approximately a quarter of its worth.

Gates has previously voiced concerns about crypto. Gates said in a 2021 interview with Bloomberg that it’s one thing for Elon Musk and Tesla to invest in bitcoin, but that doesn’t imply regular investors should.
“I do think people get bought into these manias, who may not have as much money to spare,” Gates stated.  “So I’m not bullish on bitcoin.”