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Bill Gates criticizes cryptos and NFTs for being “100% based on the Greater Fool Theory.”

“They have an asset class that’s 100% based on some kind of foolish theory that someone’s going to pay more for it than me…”

That was Microsoft MSFT,
+0.92%
Co-founder Bill Gates provides his latest thoughts on cryptocurrencies and non-fungible tokens (NFT) at a TechCrunch conference on climate change on Tuesday.

He added that any type of asset that “at its core has some kind of anonymity that you escape taxation or any government rules” he doesn’t interfere with. Gates said, “Not long or short in all these things.”

“I’m used to asset classes like a farm where they produce products or a company where they manufacture products,” he said the fourth richest person in the world with a net worth of $113 billion .

He seemed to take a special hit at the popular Bored Ape Yacht Club – one of the most popular NFT collections living on the Ethereum blockchain. “I mean, obviously expensive, you know, digital images of monkeys are going to make the world a better place,” Gates said.

NFTs have taken a hit in cryptocurrencies recently. The Bored Ape Yacht Club reserve price, which represents the cost of the cheapest available NFT on the market, has fallen nearly 14% in seven days to a low of 76 ether or $80,817, according to data NFT Price Floor.

Read: Here’s how much money you would have lost if you bought a Bored Ape Yacht Club NFT a month ago

bitcoin BTCUSD,
-3.33%
fluctuated between $20,000 and just over $21,000 on Wednesday, with the No.1 cryptocurrency down 32% over the past five days, selling in tandem with stocks as investors amid high inflation and central bank efforts to contain them to curb, have become restless.

And: Crypto Crash 2022: Why are Bitcoin and Ether in the red? Should you buy the dip?

The Federal Reserve is expected to announce a rate hike of up to 75 basis points later on Wednesday, while the European Central Bank is also holding an emergency meeting.

Losses for cryptos have caused layoffs and stress on some exchanges. Crypto lender Celsius Network sent shockwaves through the industry after suspending withdrawals, exchanges and remittances on Sunday amid a particularly brutal weekend for cryptocurrencies.

Read: Crypto lender Celsius is hiring restructuring lawyers amid mounting troubles

Meanwhile, it’s not the first time the entrepreneur and philanthropist has shadowed digital assets. Gates answered questions via an Ask Me Anything session on Reddit last month allegedly said He doesn’t like investing in cryptocurrencies because their value is based on “what another person decides someone else will pay for, so not contributing to society like other investments.”

Read: Half of Bitcoin holders on the Coinbase exchange could face losses, says Mizuho

Read: Crypto Crash FOMO? “I missed the bus on bitcoin, but now I feel like my time has come. Is it time to go big or go home? I’ve got a boring 9-to-5 job for 25 more years and I just want out.

https://www.marketwatch.com/story/bill-gates-slams-cryptos-nfts-as-100-based-on-greater-fool-theory-11655295534?rss=1&siteid=rss Bill Gates criticizes cryptos and NFTs for being “100% based on the Greater Fool Theory.”

Brian Lowry

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