Bill Gates has denied any involvement with NFTs or crypto, claiming that he is skeptical of the hoopla. On Tuesday, the billionaire discussed digital assets at the Climate 2022 conference’s TechCrunch sessions.
Gates sarcastically ridiculed the Bored Ape Yacht Club NFTs, which have generated huge excitement and celebrity appeal, with different big names from various industries coming on board.
“Obviously, expensive digital images of monkeys are going to improve the world immensely.”
Bill Gates believes that crypto is based on a greater fool theory
Bill Gates resumed his discussion of cryptocurrencies and NFTs, stating that the market is driven solely by sentiment. “As an asset class, it’s built entirely on the bigger fool hypothesis, which states that someone will pay more for it than I do.”
The greater fool theory is a behavior in which people purchase assets with the expectation that someone else will pay more for them later. When purchasers are no longer prepared to pay a higher price for an asset, demand for the asset tumbles, leaving the holder with zero value.
Bill Gates has been a prominent critic of cryptocurrencies in general, claiming that it lacks genuine value at one point. The philanthropist believes that the value of cryptocurrency is defined by other people’s willingness to pay a particular amount. He claims that crypto is nothing more than user-generated hype.
Meanwhile, key cryptos are still moving in the red, indicating that the crypto market is on its way to slaughter. As the value of Ethereum has fallen, the floor pricing of NFTs has also fallen significantly.
According to CoinMarketCap, the NFT Index, which provides a summary of eight prominent NFT collections, is down 30% for the week. On Tuesday, BAYC NFT momentarily fell below $100,000, a level it hadn’t seen since August 2021.
With trading activity at NFT marketplace OpenSea up 173 percent in the last day, more individuals may suddenly perceive NFTs as a bargain amid the crypto crisis.