Bill Gates Criticises Cryptocurrencies and NFTs and Claims That This Asset Class is "100% Based On The Greater Fool Notion."

Cryptocurrencies are "100% predicated on some type of Greater Fool Theory," according to Bill Gates, co-founder of Microsoft. According to the Greater Fool Theory, there will always be investors who are stupid enough to spend money on an overpriced venture.

 Bill Gates, a co-founder of Microsoft, has reaffirmed his atheism in the cryptosphere. The billionaire made fun of cryptocurrencies and NFTs at the recently held "TechCrunch Sessions: Climate 2022," unapologetically expressing his lack of confidence in the asset class.Cryptocurrencies are "100% predicated on some sort of Greater Fool Theory," according to Gates. According to the Greater Fool Theory, there will always be investors who are stupid enough to spend money on an overpriced venture."The quality of a company's products determines its value. Cryptocurrencies don't add to society like other investments since their worth is simply determined by what someone else is willing to pay for them, he said. While discussing the outrageous cost of Non-Fungible Tokens, Bill Gates also attacked the Bored Ape Yacht Club (BAYC) (NFTs). He said cynically, "Obviously, pricey digital photos of monkeys are going to greatly enhance the world.Using the example of a "farm where they have output" or a "business where they manufacture things," the billionaire continued that he is familiar with traditional asset classes and investments.However, he acknowledged that he is not connected with the asset class when asked about cryptocurrency. I don't have any, I prefer to invest in things that produce valuable results, he remarked. His words matched those of the like-minded Warren Buffett, CEO of Berkshire Hathaway and legendary investor. The Oracle of Omaha, Warren Buffett, recently declared that even if it were handed to him for $25, he wouldn't buy the whole quantity of Bitcoin. Buffett declared, "It doesn't create anything." What would I use it for? In any case, I'd have to sell it back to you. It won't do anything, he continued.Gates has previously referred to cryptocurrency in a similar manner. He has long been an outspoken critic of the asset class. When Gates, Buffett, and Charlie Munger were questioned by CNBC in 2018, Gates said, "As an asset class, you're not generating anything, therefore you shouldn't expect it to go up. It's essentially a pure investment based on the "greater fool theory." If there was a simple method to short it, I would do it. Another question posed to Gates at the time was: What technical innovation would the world be better off without? He immediately responded, "The way bitcoins are currently set up permits some illegal activities. It would be better to get rid of it.Additionally, Bill Gates has been giving subtly worded cautions to bitcoin investors. In a February 2021 online interview with Bloomberg, Gates was asked for his opinions on how cryptocurrency prices would change in response to Musk's statements. Gates specifically responded to that by saying, "I don't fear that Elon's bitcoin will fluctuate wildly since he has a lot of money and is highly sophisticated. People who may not have as much money to spare are drawn into these manias. Then, he had said, "You should probably be careful if you have less money than Elon.