Microsoft co-founder Bill Gates says crypto is an asset class that is 100% based on the Greater Fool Theory. The billionaire also mocked Bored Ape NFTs, stating: “Obviously, expensive digital images of monkeys are going to improve the world immensely.”

Bill Gates on Crypto and NFTs

Microsoft co-founder Bill Gates talked about cryptocurrency and non-fungible tokens (NFTs) at this year’s Techcrunch Sessions: Climate 2022 event Tuesday.

Referring to the Bored Ape Yacht Club (NFTs), Gates joked that: “Obviously, costly digital images of monkeys will improve the world tremendously.” It’s amazing .”

He explained, “I’m used asset classes like a farmer where they have output or company where they produce products,” and referred to crypto as

An asset class that’s 100% based on some sort of Greater Fool Theory that somebody’s going to pay more for it than I do.

The Greater Fool Theory states that there will always exist a greater fool on the market willing to pay a higher price for an investment already valued at a high valuation. Asset prices can plummet sharply if there is no one willing to pay a higher valuation, and investors may end up with worthless investments.

Gates stated that he will not be involved in assets that have “at their heart sort of this anonymity, that you avoid taxation and any government rules regarding kidnapping fees or other things.”

I’m not involved in that. I don’t know if I’m too long or short for any of these things.

The billionaire claimed that digital banking efforts he funds through his foundations are “hundreds and times more efficient than cryptocurrencies.”

The Microsoft co-founder has been a long-standing critic of bitcoin and cryptocurrency. During a Reddit AMA, he stated that he doesn’t own any cryptocurrency. “I like investing in things that have valuable output,” the billionaire explained. “The value of crypto is just what some other person decides someone else will pay for it, so not adding to society like other investments.”

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