Bill Gates, the pioneer of technology, co-founder of Microsoft, one of the richest men alive on earth, has rejected Crypto assets, yet again, this time saying that crypto assets such as Bored Ape, NFT as an asset class is based upon “greater fool” theory where someone is going to pay more than the earlier buyer.
In the world of investments, Greater Fool theory, says that in the investment market, there will always be some people (fools) who would buy overvalued assets in the hope that they will be able to sell these overvalued assets on profit as there will always be other greater fools who would buy these further overvalued assets.
Bored Ape is an NFT (Non Fungible Token), called as one the crypto assets, built on Ethereum blockchain. Probably, Bill Gates was referring to Bored Ape when he mentioned monkeys transforming the world when asked about crypto assets.
Bill Gates, while participating in a talk “TechCrunch Sessions: Climate 2022” organized by TechCrunch, expressed his opinion on crypto saying that as an asset class he would prefer farm where there something would be produced of value. But according to him, in Crypto there is not tangible product of value as produced in farms or factories.
Bill Gates Criticized Crypto Earlier As Well
While this is not the first time that Bill Gates has talked negatively about crypto. Last year, in 2021, during an interview to Bloomberg, Gates had said he was not bullish about crypto. On being asked about the reason for not investing in crypto, Bill Gates listed several reasons, including that, in crypto there was no output as in other assets; crypto transactions were intended to be shrouded in secrecy from the governments which gave opportunity of its being used for money laundering and terror funding activities.
Crypto Markets in Turmoil
For the last few days, crypto markets are in a severe downward spiral. Market Valuation of cryptocurrencies have come down under $1 trillion from $ 3 trillion. Terra Luna, one of the major cryptocurrencies, touted as Stablecoin has collapsed to almost zero. Job cuts are being announced even by the leading companies in cryptosphere.
The crash of crypto market was so deepening that Celsius, one of the main crypto lending companies, put a freeze on its accounts banning its customers from withdrawing funds.
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