The Microsoft co-founder is not a big fan of digital currencies. And once again made it known with humor during a conference.
“NFTs are completely based on the biggest fool theory.” Bill Gates pulled out all the stops to qualify non-fungible tokens, during a conference organized by TechCrunch, assimilating them to a gigantic bubble that can only burst one day or another. The “biggest fool theory” is indeed a financial concept that posits that a “fool” buys an asset above its value in the hope of reselling it at a higher price to an even bigger fool. Until there’s no more idiots left to pay the asking price…and the price drops.
Bill Gates also recalled that he was not steeped in this kind of business, assets he suspects were designed to avoid ” taxation or any form of regulation “.
—TechCrunch (@TechCrunch) June 14, 2022
Bill Gates, famous slayer of cryptocurrencies
The charge is harsh, but not so surprising from the billionaire, who has long been a vocal critic of digital currencies. A few months ago – before the big crypto crash – he notably called on investors to beware of these highly volatile assets, whose value is at the mercy of the slightest tweet from Elon Musk. He also largely blamed the ecological impact of mining-based cryptocurrencies. “Bitcoin uses more electricity per transaction than any other method known to mankind” he had explained in particular to the New York Times last year.
Bill Gates was not content to criticize the concept of NFTs this time. Without quoting him, he also made fun of a specific project, that of the Bored Ape Yacht Clubthis collection of 10,000 digital monkeys that is among the most popular on the web. “Obviously very expensive images of monkeys are going to make the world a whole lot better” he joked. For ” improve the world Gates says he prefers to invest in more tangible things, like ” farms and factories “.
Gates’ remarks come just as the NFT market seems to be taking a big hit. A few days ago, we learned that one of the most famous NFTs in the world, that of Jack Dorsey’s first tweet, had lost more than 99.9% of its value, going from $2.9 million to a few… $29. As if this digital token could no longer find an investor crazy enough to acquire it for an insane sum…