Bill Gates Thinks NFT Investors Are The Greatest Fools Of All

Bill Gates Thinks NFT Investors Are The Greatest Fools Of All

“Obviously, expensive digital images of monkeys are going to improve the world immensely,” quipped Bill Gates this week. The Microsoft founder turned billionaire philanthropist spoke in a question and answer session at a Tech Crunch event focused on climate change and technology.

Gates quickly pivoted from the sarcastic bit to a 30-second takedown of the entire concept of NFTs and the broader crypto market.

“I’m used to asset classes like a farm where they have output, or a company where they make products,” he said. He went on to describe the value of NFTs as “100% based on greater fool theory” — or, the idea that the only way to make a profit on your non-fungible-token is to find someone stupid enough to spend more money on it than you did, i.e. the greater fool.

Gates isn’t always right, but he’s pretty spot on with this one. Although NFTs have historically self-compared to the art market — where so-called investments accrue value with time and cultural appreciation — the reality seems closer to a standard pyramid scheme. (Granted, the traditional art market itself might also be a pyramid scheme. But at least you get a physical object out of it that can’t be stolen without a trace).

For an investor, the value of an NFT or a cryptocurrency only goes up if they get more and more people to buy-in at a later stage in the game than they did. Imagine: One person, with a few people below them, with even more people below those people.

Beyond the basic structural problem of the money triangle, the billionaire philanthropist also referenced the inherent risk and sketch-factor of blockchain namelessness. “It has at its heart sort of this anonymity that you avoid taxation or any sort of government rules about kidnapping fees or things.”

He clarified that he has no investment positions (either long or short) in NFTs or crypto. “I’m not involved in that. I’m not long or short any of those things.”

This isn’t the first time Gates has publicly derided crypto and the like. In 2018 he said blockchain currency was killing people “in a fairly direct way” during a Reddit “Ask Me Anything” session, again referencing its anonymity and its use in criminal activity. In an earlier 2015 AMA, he said that Bitcoin couldn’t be useful as a currency in poor nations because of its volatility.

More recently, in 2021, Gates cautioned against normal people (without billions to spare) investing in crypto. Those warnings seem to have panned out as cryptocurrency values continue to plummet and crypto companies struggle. So, maybe keep listening to Big Bill on this one.

Comments

  • Warren Buffett, the most famous and prolofic investor in America said the exact same thing, it has no value cause it doesnt earn money unless its sold, that it’s lack of incone generation makes it worthless.

    • Like all speculative investment bubbles, Its driven entirely by Hype. Once that hype goes away the bubble pops.

      I for one cannot wait for the NFT bubble to fully pop and hand out McDonalds applications to all the crypto bros

  • Hmmm, a disturbing lack of commentary here about how Bill Gates has been trying microchip us all with vaccines by creating 5G to spread Covid.

    An honest mistake I’m sure.

  • “…again referencing its anonymity and its use in criminal activity. ”

    Of course he would, he’s in bed with the same AmeriKKKan deep state that has successively tried to murder Julian Assange, and unfortunately looks to set to do so, thanks to Priti Patel. The same AmeriKKKan deep state that pressured payment processors – the same ones Australians rely on and store financial information of Australians outside of Australia and freely hand it over to AmeriKKKan authorities – to deliberately censor Wikileaks by refusing to service it.

    Why wouldn’t Gates be against anonymity, his alphabet agency buddies despise it when the average person has the means to elude their Orwellian mass-surveillance. Wikileaks’ adoption of cryptocurrency payment methods didn’t come out of nowhere.

    Is Wikileaks a criminal organisation? The US-initiated Iraq War was criminal, yet payment processers and Microsoft continued to service its government and people.

      • If you’ve got irrefutable proof that can disprove PayPal’s own statements that the AmeriKKKan deep state instructed them to ban Wikileaks, or how Visa and Mastercard carried out the bidding of their AmeriKKKan masters to censor Wikileaks by starving it of funding, you’re free to provide it.

        The AmeriKKKan stranglehold over international finance is something Gates wants to maintain, as it is a core part of AmeriKKKan foreign policy, and is threatened by proliferation of cryptocurrencies.

        “Le anonymoos means evil criminals will use it” is a constantly-repeated line used to justify the increasing authoritarianism of so-called ‘free’ democracies. If you’re a good 1000+ social credit citizen, what reason do you have for online anonymity? Financial anonymity? Why shouldn’t every Australian going online have an internet license, that we can ‘protect the children’ after all!

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