Microsoft co-founder Bill Gates claims that crypto is an asset class based 100% on the big fool theory. The billionaire also poked fun at Bored Ape’s NFTs, saying, “Obviously expensive digital images of monkeys are going to make the world a whole lot better.”

Bill Gates on Crypto and NFTs

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

Referring to the Bored Ape Yacht Club NFTs, Gates said sarcastically, “Obviously the expensive digital images of apes are going to make the world a whole lot better. It’s so amazing.

He clarified, “I am used to asset classes like a farm where they have production or a company where they make products,” describing crypto as:

An asset class based 100% on some kind of big fool theory that someone is going to pay more than me.

The bigger fool theory suggests that there will always be a bigger fool in the market willing to pay a price based on a higher valuation for an already overvalued investment. However, eventually, when there is no one left willing to pay a higher price, asset prices can fall sharply, leaving investors to hold worthless investments.

Gates emphasized that he is not getting involved in any asset that “has at its heart a kind of anonymity that allows you to avoid taxes or any kind of government rules about removal fees or whatever.” He pointed out:

I’m not involved in that. I’m neither long nor short in any of these things.

The billionaire also claimed that the digital banking efforts he supports through his philanthropic foundations are “hundreds of times more effective” than cryptocurrencies.

The Microsoft co-founder has long been a critic of cryptocurrency and bitcoin. In May, he told a Reddit AMA that he didn’t own any cryptocurrency. “I like to invest in things that have value,” the billionaire explained. “The value of crypto is just what another person decides someone else will pay for it, so no addition to society like other investments.”

What do you think of Bill Gates’ comments? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons, lev stingy

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