Bill Gates Says NFTs And Cryptocurrencies Are “Based On The Biggest Madman Theory”

Tech billionaire Bill Gates doesn’t mince words about NFTs and cryptocurrencies, which he calls “100% based on the biggest fool theory,” a financial concept that can make money even overvalued assets provided a bigger fool is found to hand them over. to sell .

Credit: Bill Gates/Twitter

It is clear that expensive digital images of monkeys are going to vastly improve the world. Bill Gates was joking this week. with reference to the NFT Bored Ape Yacht Club project† The billionaire participated in a question-and-answer session at a Tech Crunch event devoted to climate change and technology, reaffirming his stance on cryptoassets and NFTs.

Despite the popularity of NFTs, Microsoft co-founder Bill Gates has don’t have a good opinion about it† It considers non-replaceable tokens and cryptocurrencies as assets based on ” biggest fool theory For those who don’t know, the biggest foolish theory is an approach that states that one can profit from an overvalued asset as long as there is someone willing to buy it for more than what you paid. Eventually the market will be flooded and there will be no longer be “crazy people” buying into the wave of profitability from this asset.In other words, these overvalued assets increase in value if enough people believe they are worth something

Bill Gates Views Cryptocurrencies and NFTs as Scams

Instead of spending its money on volatile digital assets,The billionaire philanthropist said he would rather invest in assets with tangible resultslike farms or factories,” or a company that makes products”, and that he had no positions in cryptocurrencies or NFTs.

Although NFTs have traditionally been compared to the art market, where investments increase in value over time and cultural appreciation the reality seems closer to a standard pyramid scheme† The billionaire adds that these digital assets are designed to ” avoid tax or any kind of government regulation in addition to a huge risk for those who invest. This isn’t the billionaire’s first time tackling cryptoassetsas he regularly repeats that digital currencies are not worth the least.

The NFT and Cryptocurrency Market Collapses

Gates’ comments come at a time when: financial markets around the world are in turmoil, and Bitcoin, which was born out of the 2008 recession, was not spared. Indeed, this “greatest fool” theory has worked well for cryptocurrency and NFT investors and traders, until it wasn’t the case a few weeks ago

35 nft stolen

We’ve seen NFT searches on Google recently collapsed by 75%, or thousands of artist Gustav Klimt’s NFTs are now worth next to nothing. The NFT bubble has burst, unsurprisingly, after the recent market correction. The floor price for a Bored Ape Yacht Club, which Bill Gates referred to in the interview, has recently fallen to its lowest level since last August. the cost of entry has fallen by almost 80% in two months† Unsurprisingly, this does not sit well with those who have invested astronomical sums for their monkey images.

Despite crisis, various companies and personalities continue to believe in the potential of NFTs† Nike recently sold an image of a shoe for $125,000, and eBay also launched a collection of NFTs for athletes.

bitcoin course
Credit: Unsplash

The NFT market is not the only one in bad shape as the cryptocurrency market is also seeing the price of major currencies falls uncontrollably† Bitcoin had hit a record high of $69,000 in November 2021, but since then the most famous cryptocurrency in the world has lost two thirds of its value tumble around $20,000 this week. Bitcoin, in particular, could quickly dip below $18,000, and Ethereum has also hit levels not seen in years.

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