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Bill Gates says that Cryptocurrencies and NFTs are “100%” based on Greater Fool Theory

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Co-founder Bill Gates said he believes cryptocurrencies and NFTs are “100%” based on the theory of the larger fool.

The 66-year-old millionaire mentioned that overvalued assets will go up because there are enough people willing to pay high prices. He joked that “expensive digital images of monkeys” would “improve the world tremendously.”

Mr. Gates, who has been stealing cryptocurrencies for years, he said At an event at TechCrunch in Berkeley, California on Tuesday, people bought cryptocurrencies and NFTs on the idea that whatever their price, it could be more expensive because “someone will pay more than me.”

He said he was not involved in “any of these things” in the long or short term. Other wealthy investors and executives, including Warren Buffett and Jamie Dimon, have expressed skepticism about cryptocurrencies. Mr. Buffett once called bitcoin a “rat poison”.

NFTs, or non-fungible tokens, are digital evidence of the purchase of goods such as art, digital music, and sneakers. With the rise in popularity, their demand seems to have faded lately. Rising interest rates have crushed risky bets in financial markets, with NFTs being one of the most speculative.

Referring to the NFT, Bored Ape Yacht Club seemed to be commenting on a monkey from the NFT collection, Mr. Gates.

He said he preferred the asset class, “like a farm with products or a company that makes products.”

His comments that bitcoin and other cryptocurrencies have slipped a lot in recent days amid the failure of the global market, a wave of investors that shattered a lot of profits at the beginning of the pandemic as a wave of digital currencies began.

The price of Bitcoin was recently sold at more than $ 20,000 on Wednesday. It lost more than two-thirds of its value in November, the fourth-worst-selling cryptocurrency in 13 years.

More billboards have swept through the cryptocurrency industry this week. Crypto Exchange Coinbase Global Inc..

said it would cut nearly one-fifth of its employees and crypto lenders Celsius Network LLC, one of the largest crypto lenders, told users Sunday night that all withdrawals, exchanges and account transfers were pausing due to extreme market conditions. The company has hired a law firm to look into restructuring options.

Mr. Gates is the fourth richest person in the world, with a net worth of $ 113 billion, according to the Bloomberg Billionaires Index. He wrote in a question and answer session on Reddit last month that he had no cryptocurrency.

“I like to invest in things that have a valuable return,” he said.

“The value of the crypto,” he added, “is that another person decides that someone else will pay for it.”

Write to Alyssa Lukpat at alyssa.lukpat@wsj.com

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Bill Gates says that Cryptocurrencies and NFTs are “100%” based on Greater Fool Theory

Source link Bill Gates says that Cryptocurrencies and NFTs are “100%” based on Greater Fool Theory

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