• As an asset class, it’s 100% based on the greater fool theory,” Bill Gates said.
• Gates was most likely alluding to the Bored Ape Yacht Club (BAYC), a popular NFT collection constructed on the Ethereum blockchain that depicts various caricatures of monkeys
• He stated that he invests in items with “valuable output,” claiming that digital assets lack such traits.

The American business magnate and Co-Founder of Microsoft – Bill Gates – blasted non-fungible tokens (NFTs) for not providing any use-cases to society. Cryptocurrencies and digital collectibles, in his opinion, are based on “the greater fool theory,” and people should exercise caution when dealing with them.

Once again, crypto is being criticized

Bill Gates, the American billionaire, repeated his anti-crypto stance at a recent climate conference. He sarcastically noted that non-fungible tokens such as “digital images of monkeys are going to improve the world immensely.”

Gates was most likely alluding to the Bored Ape Yacht Club (BAYC), a popular NFT collection constructed on the Ethereum blockchain that depicts various caricatures of monkeys. Several celebrities, including Madonna, Neymar, and Serena Williams, have expressed interest in the antiques in recent months, spending hundreds of thousands of dollars on some of them.

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Gates also explained how the Bitcoin market works, citing it as an example of “the greater fool theory”:

“As an asset class, it’s 100% based on the greater fool theory – that somebody’s going to pay more for it than I do.”

People overlook price valuations, earnings reports, and other essential facts, according to the concept, in order to sell their items to a “fool” willing to pay more than the owner had previously spent. When the market runs out of “fools,” prices go down, leaving many investors with overvalued assets that no one wants to buy.

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Gates confirmed a month ago that he does not own any cryptocurrency. He stated that he invests in items with “valuable output,” claiming that digital assets lack such traits.