Bill Gates Disses Crypto, NFTs as ‘Greater Fool’ Follies at UC Berkeley Event

Billionaire Bill Gates, who has served as a counterpoint to fellow billionaire and well-known crypto enthusiast Elon Musk, had some choice words for the on Tuesday currently refueling Cryptocurrency and NFT universe.

“You have an asset class that’s 100% based on some kind of foolish theory that somebody’s going to pay more for it than me,” Gates said during a TechCrunch event at UC Berkeley, per MarketWatchin response to a question about NFTs and crypto.

Gates also quipped, “Obviously, expensive digital images of monkeys are going to improve the world immensely.”

The bigger fool theory, in case you didn’t know, is the theory in economics that a fool’s bad investments can pay off in some cases because a “bigger fool” comes to buy them – and that’s the case with Things like the rush to invest in GameStop last year, something that only paid off for people who got in early and got out quickly when the stock price soared.

“I’m used to asset classes like a farm where they make products or a company where they make products,” Gates said. He added that he wasn’t too keen on any type of asset that “at its core has a kind of anonymity that you avoid taxes or any kind of government regulation.”

Gates’ comments come after a week in which cryptocurrencies lost value almost across the board, with bitcoin — one of the “more stable” currencies with the longest lifespan to date — falling 32% over the past five days. The Digital Images of Monkeys comment was aimed at the Bored Ape Yacht Club, one of the most reputable NFTs, whose reserve price has also fallen sharply — although, insanely, these images of monkeys are still worth the equivalent of $80,000 a piece.

As Bloomberg notes, Gates has also touted that the digital banking efforts he has supported through his philanthropic work are “a hundred times more efficient” than cryptocurrencies.

In the meantime, the bear market that markets have entered this week may end up scaring off many would-be crypto brethren before it’s all over.

“The current bear market is now entering a phase that aligns with the lowest and darkest phases of previous bears,” strategists at glass nodespecializing in blockchain investments, in a note to investors, per Bloomberg. “The market, on average, is barely above its cost base and even long-time holders are now being removed from the holder base.”

And as another strategist, Brian Nick of Nuveen, said in an interview with Bloomber, “Bitcoin is trading like a penny stock. There are all sorts of reasons to believe that once it starts falling rapidly, it can keep falling. If he can move 20% in two days, he can move another 20% in the next two days.”

Photo: Kanchanara

Bill Gates Disses Crypto, NFTs as ‘Greater Fool’ Follies at UC Berkeley Event Source link Bill Gates Disses Crypto, NFTs as ‘Greater Fool’ Follies at UC Berkeley Event

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