Bill Gates says crypto, NFTs are ‘greater fool theory’ type of investments
Premium- Bill Gates has criticized crypto before, sparring with Elon Musk last year over whether Bitcoin is too risky for retail investors
Microsoft co-founder and Billionaire Bill Gates dismissed cryptocurrency projects such as nonfungible tokens (NFTs) as shams 'based on the greater-fool theory' at an event on Tuesday, reviving past criticisms of digital assets.
“Obviously, expensive digital images of monkeys are going to improve the world immensely," Bill Gates said sarcastically while speaking at an event in Berkeley, California hosted by TechCrunch, adding that he is neither long nor short on the asset class.
Gates has criticized crypto before, sparring with Elon Musk last year over whether Bitcoin is too risky for retail investors and the environmental harm of mining coins.
A broader crypto selloff was fueled this week by higher than forecast US inflation and the halt of withdrawals by the lending platform Celsius. Popular NFT collections, including the celebrity-favored Bored Ape Yacht Club (BAYC), are also being hit hard.
The global cryptocurrency market peaked at $2.9 trillion in November 2021, but it has faltered so far this year. It has lost $1 trillion in value in the last two months alone as investors ditched riskier assets in the face of high inflation and fears that interest rate raises by central banks will hamper growth.
Gates also defended digital banking efforts he’s supported through his philanthropic foundations, which he described as ‘hundreds of times more efficient’ than cryptocurrencies.
In a ‘Ask Me Anything’ exchange on Reddit last month, the Microsoft co-founder revealed he had not distributed some of his wealth into cryptocurrencies. Gates further explained that he likes investing in things that have “valuable output," arguing digital assets aren't his cup of tea.
“I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments," Gates said on the Reddit exchange.