SNEAK PEEK
- Bill Gates has dismissed cryptocurrency projects as nothing more than shams based on the greater fool theory.
- Gates ranked digital banking efforts hundreds of times more efficient than cryptocurrencies.
- Mr. Gates has criticized crypto before as well.
During a climate conference on Tuesday, Bill Gates dismissed cryptocurrency projects like NFT tokens as shams based on the greater fool theory.
According to the greater fool theory, prices increase because people are able to sell an overpriced item to a greater fool, no matter if it is overvalued. That is, of course, until there are no greater fools left.
Speaking at an event in Berkeley, California, the billionaire made a sarcastic remark and said:
Obviously, expensive digital images of monkeys are going to improve the world immensely.
He added that he’s neither long nor short of the asset class.
Previously too, he has criticized crypto, sparring with Elon Musk over whether Bitcoin is too risky for retail investors and the environmental harm of mining coins. While speaking on Tuesday, as the founder of Breakthrough Energy Ventures, the climate-focused fund he began in 2015, Gates noted the difficulty that happens while recruiting Silicon Valley engineers to work in industries such as steel and chemical production in need of lower greenhouse gas emissions.
Bitcoin plunged greater than 15% Monday and one other 5.4% Tuesday, part of a broader crypto sell-off fueled by greater than forecast US inflation and the halt of withdrawals by the lending platform Celsius. Well-liked NFT collections, together with the celebrity-favored Bored Ape Yacht Membership (BAYC), are also being hit quite hard.
Gates has supported digital banking efforts through his philanthropic foundations and described them to be hundreds of times more efficient compared to cryptocurrencies.
Despite attracting ample endorsements from celebrities, NFTs have been dismissed by some prominent personalities at their peak popularity. For example, Canadian actor Keanu Reeves found the idea of paying tons of money for artworks that can be easily reproduced laughable.
The prices of popular cryptocurrencies fell off a cliff this week, with Bitcoin dropping to the $20,000 level for the first time since December 2020.
