Microsoft co-founder and billionaire Bill Gates accused NFT projects, which include many altcoin projects, as being “based on the theory of great stupidity”. Here are the details…
Bitcoin and altcoin skeptic Bill Gates shares his latest comments
The Microsoft founder made his comments on Bitcoin and the altcoin market while speaking at a climate conference in California on Tuesday hosted by TechCrunch . In this case, he noted that he is neither long nor short for the entire sector. He sarcastically said:
Undoubtedly, expensive digital images of monkeys will dramatically improve the world.
Bill Gates has stated that NFTs are an investment in the “bigger fool theory” type of investment. As we reported above, Gates sarcastically stated that people who spend a fortune on monkey paintings can make the world a much better place. The “bigger idiot” theory is that people, regardless of their true worth, hope that someone else will come along and pay even more; It is a practice where they invest in overvalued assets.
NFT investing is booming
But, driven by the belief that there will always be someone willing to pay more, markets eventually hit a snag. Usually when there is no one left willing to pay a higher price. Once this point is reached, asset prices can drop rapidly, leaving investors with worthless assets. The NFT bubble predictably burst after the recent market correction. Bored Ape Yacht Club’s floor price has dropped to the lowest level since last August. The cost of entry has dropped by almost 80 percent in just two months. Investors who bought the most popular NFT images at much higher prices were left in the dust.
Gates is a well-known crypto skeptic who has criticized Bitcoin (BTC) multiple times. Last February, he warned investors to stay away if they didn’t have as much money as Elon Musk. As we reported on Kriptokoin.com, Gates used the expressions, “I am not optimistic about Bitcoin and my general thought would be: If you have less money than Elon, you should probably be careful.”
NFTs received a lot of support from celebrities, while some prominent personalities chose to criticize them at the peak of their popularity. For example, Canadian actor Keanu Reeves found the idea of paying tons of money for easily reproduced artworks ridiculous. Gates’ skepticism is not surprising given that he is a longtime crypto critic. In May 2018, the billionaire claimed that he would be willing to short Bitcoin if he could. Gates doesn’t seem to have warmed up to cryptocurrencies as he complained about the lack of intrinsic value in a Reddit post.
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