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Microsoft co-founder Bill Gates said cryptocurrencies are a 100% asset class based on the Greater Fool Theory. The billionaire also mocked Bored Ape NFTs, saying: "Obviously, the expensive digital image of monkeys will improve the world a lot."
Referring to NFTs Bored Ape Yacht Club, Gates sarcastically said: "Obviously, the expensive digital image of monkeys will improve the world a lot. It's unbelievable.'
He explained, "I'm used to asset classes like a farm where they have outputs or a company where they create products," describing cryptocurrencies as follows:
"A 100% asset class is based on some kind of Greater Fool Theory that someone will pay more than I do."
The Greater 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 overvalued investment. In the end, however, when no one is willing to pay a higher price, asset prices can plummet, leaving investors to hold worthless investments.
Gates emphasized that he is not involved in any property that "is essentially anonymous to avoid being taxed or any government law on kidnapping fees or something." He emphasized:
"I have nothing to do with that. I'm not any of those things."
The billionaire also stated that the digital banking efforts he supports through his charitable funds are "hundreds of times more effective" than cryptocurrencies.
The Microsoft co-founder has long been a critic of cryptocurrencies and bitcoin. In May, he said during a Reddit AMA session that he doesn't own any cryptocurrencies. "I like to invest in things that have valuable output," the billionaire explains. "The value of cryptocurrencies is just what some others decide others will pay for it, so it's not as social as other investments.
