Microsoft co-founder Bill Gates believes that cryptos and NFTs are “Greater Fool Theory” investments. He makes this known in a sarcastic diatribe stating that ‘expensive digital images of monkeys would certainly improve the world’.
The Greater Fool Theory
It is not new that Gates is skeptical about cryptocurrencies and the entire digital asset space. He now uses the Greater Fool Theory to argue why he doesn’t support cryptos or NFTs. He said the following:
I’m used to asset classes where they have output, or like a company where they make products. I don’t deal with cryptos.”
This Greater Fool Theory mentioned above is the idea that during a market bubble one can make money by buying overvalued assets and later selling them for a profit because it will always be possible to find someone who is willing to pay a higher price.
While Bill Gates is of course one of the richest persons in the world, he continues to find cryptocurrencies nothing. This despite the considerable investments from institutions, among others.
Digital assets rejected by Gates
Where digital assets are simply rejected by Gates, he does support digital banking. He notes that this is several times more effective than digital currencies. His organization called ‘The Bill and Melinda Gates Foundation’ has provided financial support to several digital banking initiatives that provide assistance to non-banking people.
Gates’ views come in the midst of a tough and volatile time for the entire crypto market. While he doesn’t support cryptocurrencies right now, his sarcastic comments are unlikely to resonate with the crypto community.
