Tech

Bill Gates says crypto and NFT are based on “big fool theory”

Bill Gates

Gerard Miller CNBC

Bill Gates is not a fan of cryptocurrencies or irreplaceable tokens.

Speaking on Tuesday at TechCrunch about climate change, the billionaire, co-founder of Microsoft, described the phenomenon as something that “100% based on the theory of the greater fool”, implying the idea that inflated assets will rise in price if enough willing investors. to pay for them more.

Gates joked that “expensive digital images of monkeys” “will greatly improve the world”, referring to the highly hyped Bored Ape Yacht Club NFT collection.

NFTs are tokens that cannot be exchanged. They are often touted as a way to prove ownership of digital assets such as art or sports collectibles. But critics consider them inflated and potentially harmful to the environment, given the energy intensity of cryptocurrencies. Many NFTs are built online after Ethereum, the second largest token.

“I’m used to asset classes … for example, to the farm where they make products, or to the company where they make products,” Gates said.

As for the crypt, “I’m not involved,” Gates added. “I’m not long or short any of these things.”

Cryptocurrencies fell sharply this week after Celsius, a cryptocurrency company, suspended all withdrawals. The defeat sparked fears of Celsius’ insolvency and possible consequences for other parts of the crypto market. For his part, Celsius says it “works around the clock for our community.”

The broken cryptoworld was already licking its wounds after the collapse of the UST – the so-called “stablecoin”, which was supposed to cost $ 1 – and luna, its cognate token. At their peak, both cryptocurrencies were worth a total of $ 60 billion.

Bitcoin last traded at $ 21,107 on Wednesday, down 7% in the last 24 hours. The world’s largest cryptocurrency has wiped out more than half of its value since early 2022.

WATCH: What you need to know before investing in a crypto

Bill Gates says crypto and NFT are based on “big fool theory”

Source link Bill Gates says crypto and NFT are based on “big fool theory”

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