Bill Gates has described the phenomenon of NFTs and cryptocurrencies as being “100% based on the biggest fool theory.”
Billionaire businessman, founder of Microsoft, Bill Gates stated that NFTs and cryptocurrencies are based on a system known as the dumbest theory. This statement was made in the context of the crypto winter and the resounding drop in popularity of NFTs.
Gates recently participated in a TechCrunch talk on climate change. The billionaire Microsoft co-founder described the phenomenon of NFTs and cryptocurrencies as something that is “100% based on the theory of the greatest fool.”
This is the idea that overvalued assets will rise in price when there are enough willing investors to pay more for them.
Bill Gates and Digital Monkeys
Gates sarcastically said that “expensive digital images of monkeys” would surely “improve the world immensely.” This was, of course, a reference to the Bored Ape Yacht Club’s famous NFT collection. The billionaire also made mention of the crypto market, saying that he is “not involved in any of that.”
Gates stressed that he would prefer to invest in assets with tangible results, such as farms, factories, or in the manufacture of products.
Dumbest Theory
What is “the dumbest theory” that Bill Gates talks about?
The dumbest theory posits that financial bubbles occur due to the dogmatically optimistic behavior of market participants (called the dumbest). They buy overvalued assets in anticipation of their…
