Billionaire Bill Gates dismissed cryptocurrencies and NFTs speculative instruments that rely on the “great-fool theory” for their previous price jumps. He said that its demand is simply based on the belief that another person will come along to pay more than the previous purchaser.
Billionaire Bill Gates dismissed cryptocurrencies and NFTs as speculative instruments that rely on the “greater-fool theory” for their previous price jumps during a TechCrunch climate conference on Tuesday. Amid a crashing market that has seen bitcoin fall more than 50 percent year to date, the philanthropist, founder of Microsoft MSFT, and long-time crypto critic called cryptocurrencies an asset class that is based on the belief that “someone is going to pay more for it than I do.” The greater-fool theory stipulates that one can still make money off an asset as long as others are willing to pay more. The danger? When no one is willing to pay a higher price, leading investors with worthless assets. With the crypto markets in decline and Bitcoin’s BTC price falling to its lowest values since December 2020, Gates’ assertion could be shared by many.
