Bill Gates, Microsoft’s co-founder, spoke about cryptocurrency and non-fungible tokens (NFTs), Tuesday at Techcrunch Sessions: Climate 2022.
Gates joked about the Bored Ape Yacht Club NFTs and said, ‘Obviously, costly digital images of monkeys will improve the world tremendously. It’s amazing.
He explained that he was used to asset classes such as a farm producing output or a company making products.
A 100% asset class that is based on the Greater Fool Theory. This means that someone else will pay more than me for it.
According to the Greater Fool Theory, there will always be a bigger fool on the market willing to pay a higher price for an investment that is already too expensive. Asset prices can plummet sharply if there is no one willing to pay a higher amount, and investors may end up with worthless investments.
Gates stated that he will not be involved in assets that have ‘at their heart sort of this anonymity, that you avoid taxation and any kind of government rules regarding kidnapping fees or other things’. He emphasized:
That is something I am not involved with. These things are not my forte.
He also claimed that digital banking efforts he funds through his foundations are ‘hundreds upon times more efficient’ than cryptocurrency.
Microsoft co-founder is a long-standing critic of bitcoin and cryptocurrency. During a Reddit AMA, he stated that he doesn’t own any cryptocurrency. The billionaire stated that he likes investing in things with valuable output. The value of crypto is what another person decides to pay for it. It does not add to society like other investments.