American business magnate and Microsoft co-founder Bill Gates has slammed non-fungible tokens (NFTs) for not offering any use case to society. In his view, cryptocurrencies and digital collectibles are based on a “greater fool theory” and people should be cautious when dealing with them.
Criticize cryptocurrencies again
At a recent climate conference, American billionaire Bill Gates reiterated his anti-crypto stance. He sarcastically pointed to non-fungible tokens such as “digital images of monkeys that will vastly improve the world.”
In his comments, Gates is likely referring to the Boring Ape Yachting Club (BAYC) — a collection of popular NFTs built on the Ethereum blockchain that depicts different monkey cartoons. Over the past few months, the collections have become a point of interest for a host of celebrities, including Madonna, Neymar and Serena Williams, who have spent hundreds of thousands of dollars on some of them.
Gates also explained how the cryptocurrency industry works, as he sees it as a prime example of the “greater fool theory”:
“As an asset class, it’s 100% based on the bigger fool theory — someone will pay more for it than I do.”
According to this concept, people ignore price valuations, income reports, and other vital information and just sell their products to “dumbs” who are willing to pay more than the owner previously spent. Once the market gets rid of the “fool,” prices collapse and many investors have high-priced assets that no one wants to buy.
A month ago, Gates admitted that he did not own any cryptocurrency. He said he invests in things that have “valuable outputs,” arguing that digital assets don’t have that quality.
Other points of view on NFTs
Despite becoming a trend, Bill Gates is not the only critic of non-fungible tokens. Last year, sports commentator, comedian and popular podcast host Joe Rogan said he wasn’t interested in digital collectibles. Additionally, he described them as a cryptocurrency “hustle.”
Rogan doesn’t understand how people spend huge sums of money on digital art that can be downloaded for free:
“That’s my problem, I can have that picture and I can put it on my phone.”
Earlier this year, American rapper Kanye West urged his fans to stop asking him to “do NFTs.” He said he was committed to building products for the “real world” rather than the digital world. A few months later, however, the musician reversed course and filed a trademark application for NFT and Metaverse.
Featured Image Courtesy of AAgency
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