At this year’s Techcrunch Climate 2022 event on Tuesday, Microsoft Co-founder Bill Gates discussed crypto and non-fungible tokens (NFTs).
Gates mockingly remarked in reference to the Bored Ape Yacht Club NFTs: “Obviously, pricey digital photographs of monkeys are going to significantly better the world. That’s really amazing.
“I’m used to investment vehicles like a farm where they have value or a corporation where they generate items,” he clarified, comparing cryptocurrency to:
“A class of investments that is entirely predicated on the idea that someone will pay more for it than I do.”
According to the Larger Fool Theory, there will always be a greater fool willing to buy an already overpriced investment for a price based on a higher return.
Asset prices can eventually drop significantly, leaving investors with worthless holdings when no one is left ready to pay a higher price.
Gates emphasized that he is not investing in any entity that “at its core sort of has this anonymity so you evade taxation or any sort of government restrictions about kidnapping fees or whatnot.” He made it clear:
I’m not a part of that. I don’t have any of those characteristics, either.
The billionaire added that compared to cryptocurrencies, the initiatives he endorses in the field of digital banking are “countless times more efficient.”
The co-founder of Microsoft has long opposed cryptocurrencies like bitcoin. He said that he did not own any cryptocurrencies at a Reddit AMA in May.
The billionaire stated, “I appreciate investing in things that generate valuable output.” As opposed to traditional assets, “the value of cryptocurrencies is just what someone else decides someone else will pay for it.”
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