Bill Gates, the founder of Microsoft, believes that non-fungible tokens (NFTs) are “100% based on greater fool theory.” The theory is that people can make money by buying assets that are overpriced and later selling them at a profit. Gates made this statement at the Tech Crunch conference.
The billionaire also said he has no involvement in crypto assets, adding that he is familiar with asset classes such as a company where they make products or a farm where output is generated.
Gates, speaking at the conference, said that a kind of greater fool theory that somebody’s going to pay more for it than he does is the basis of the NFTs and cryptocurrencies.
Gates says the concept of anonymity lies at the core of the crypto and NFT movement through which buyers can avoid government rules or taxation regarding “kidnapping fees or things.”
During the pandemic, the hype around cryptocurrencies grew, with more investors adding digital assets to their portfolios. Banks and brokers, too, started offering their purchasing and custody services. The craze of cryptocurrencies also reached celebrities, with many musicians and NBA players either creating their own NFT collection or investing in it. Former first lady Melania Trump too has entered the world of NFTs.
These comments by the Microsoft founder came at a time when Bitcoin suffered a significant drop of 23% over the weekend, reaching the low it has seen since late last year. The top altcoin Ethereum too, experienced a major dip of 32% percent.
For the first time since January, the total crypto market has dropped even lower to $1 trillion. Crypto crash surged with the Terra collapse that happened early this May. However, a Chainalysis report suggested that the recent crypto crash led to the decline in the tech market instead of the UST collapse.
At the time of writing, the price of Bitcoin was trading at $21,669.88, up 6.15% in the last 24 hours. While Ethereum’s price stood at $1,159.99, up 8.76% in the last 24 hours.
Source: https://www.thecoinrepublic.com/2022/06/16/bill-gates-says-nft-tokens-are-100-based-on-greater-fool-theory/