Bill Gates has said that they have no place in cryptocurrencies or non-fungible tokens (NFTs), as they are “100 percent based on a more foolish principle”.
The theory is a financial concept that even exorbitant assets can make money as long as you find a big nerd to sell them.
Gates said he prefers to invest in assets with tangible outputs, such as farms or factories, “or a company where they make products.” He was speaking at an event on climate change organized by TechCrunch.
“I’m not involved in this. I’m not tall or short in any of these things,” Gates said on crypto and NFTs. He said he suspects these properties are being designed to “avoid taxation or government regulations of any kind”.
“Obviously, expensive digital images of monkeys are going to make the world a lot better,” Gates said, referring to the major NFT project, Bored Ape Yacht Club.
This is not the first time Gates has expressed doubts about cryptocurrencies.
In an interview last year, he worried about the dangers of regular investors buying into bitcoin, especially when the cryptocurrency’s value was so volatile and could be tanked based on tweets from a major investor like Elon Musk, The Verge reported. .
Gates said, “I think people get caught up in these frenzy who don’t have that much money.” “My general view would be that if you have less money than Elon, you should probably be careful.”
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Gates’ warnings about instability were prophetic. The report said that when he was speaking in 2021, the price of bitcoin was rising, but later fell dramatically towards the end of the year.
Since then, the price of bitcoin has crashed once again. This dramatic decline is part of a broader set of convulsions that shook the crypto world, following the collapse of so-called “stablecoin” Terra in May and the ongoing failure of crypto lending platform Celsius.
Similarly, the prices of NFTs have also fallen sharply. Some of the biggest projects like Bored Ape Yacht Club have lost more than half their value. At the same time, trading volumes have increased, as buyers seek to break into the digital asset at rock-bottom prices, the report said.
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