Bill Gates is sceptical of cryptocurrencies and non fungible tokens (NFTs), blasting them for being based on “greater fool theory”.
Speaking to TechCrunch on Tuesday, Microsoft’s billionaire ex-CEO said he’s not involved in crypto or NFTs, saying they were “100% based on a sort of greater fool theory, where someone is going to pay more for it than I do.”
Gates also criticised them for their lack of transparency and being able to avoid taxes and government regulations.
He sarcastically said, “obviously expensive images of monkeys are going to improve the world massively,” referring to the Bored Apes Yacht Club NFT collection.
He said he’s not “long or short” on crypto. “I’m used to asset classes like a farm where they have output or a company where they make products.”
Gates’ comments come as the crypto market experiences a drastic crash, with the prices of major tokens plummeting. Bitcoin dropped 4.50% on Wednesday afternoon to $21,063.70, a low not seen since December 2020. The token has shed more than half its value this year, having reached a record high price of near $69,000 in November 2021. Other tokens fell alongside Bitcoin, with Ethereum, the token on which many NFTs are built, dropping 4.74% to $1141.31, a low last seen in January 2021.
Bitcoin is expected to fall further, with Clem Chambers, CEO of Online Blockchain plc, preparing for a price drop below $20,000.
“Bitcoin is good long-term value under $20,000 but the price can easily go much further south with $13000 my target for a low,” Chambers said. “However, it could even get under $10,000 at the extremes with a crash capitulation always a wild moment of untradable lows.”
The ‘Crypto winter’ will last 2-3 years; until after the BTC halving.”