Microsoft founder billionaire Bill Gates on Tuesday lashed out at cryptocurrency projects such as nonfungible tokens calling them shams “based on the greater fool theory” on Tuesday.
The Greater Fool Theory is the idea that, during a market bubble, one can make money by buying overvalued assets and selling them to a :greater fool”s who is willing to pay an even higher price. But inevitably the bubble has to burst and prices come crashing down.
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” Gates said sarcastically while speaking at a climate conference event in Berkeley, California hosted by TechCrunch.
The statement came as Bitcoin plunged more than 15% on Monday and another 5.4% onTuesday, part of a broader crypto selloff. Popular NFT collections including the Bored Ape Yacht Club (BAYC) are also being battered.
Gates has been a strong critic of crypto and taken on Tesla founder Elon Musk on the issue last year over whether Bitcoin is too risky for retail investors. Musk has played a big role in popularising cryptocurrencies.
Also read: IMF experts warn of danger posed by cryptocurrencies
