- Bill Gates criticized crypto and NFTs in a recent interview.
- This saw him calling NFTs the execution of the greater-fool theory.
- All of this comes during a crypto crash.
Bill Gates recently weighed in on crypto and believes the market is based on the greater-fool theory.
Specifically, Gates took a stab at the non-fungible token (NFT) market. He even made reference to Bored Ape Yacht Club, a popular NFT project focused on images of apes in various styles or attire.
According to Bill Gates, NFTs are “100 percent based on greater fool theory.” He also made clear that he holds no positions in cryptocurrencies and expressed suspicion of assets made to “avoid taxation or any sort of government rules.”
So what exactly is the greater-fool theory? Let’s take a look at the official definition from Investopedia.
“The greater fool theory argues that prices go up because people are able to sell overpriced securities to a ‘greater fool,’ whether or not they are overvalued. That is, of course, until there are no greater fools left.
Investing, according to the greater fool theory, means ignoring valuations, earnings reports, and all the other data. Ignoring the fundamentals is, of course, risky; and so people subscribing to the greater fool theory could be left holding the bag after a correction.”
Bill Gates’ comments come at a rough time for the crypto market. There’s currently a crash taking place that’s seeing many of the digital assets take a beating.
Investors seeking out more crypto news for Wednesday will want to stick around!
We’ve got all the most recent crypto news that traders need to know about today! That includes the latest news concerning Dogecoin (DOGE-USD), Binance, and Bitcoin (BTC-USD). You can read that news that the following links!
More Crypto News for Wednesday
- Cryptocurrency Has Crashed: Here’s Dogecoin’s Silver Lining
- Crypto Jobs Alert: Binance Opens 2,000 Positions for Hiring
- Four Charts That Should Make You Go Big on Bitcoin
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.