Billionaire Microsoft co-founder Bill Gates has talked down on investments in cryptocurrencies and NFTs.
Gates argued that the digital assets market is largely driven by speculation.
“As an asset class, it’s 100% based on the greater fool theory—that somebody’s going to pay more for it than I do,” Gates said during the TechCrunch Sessions: Climate 2022 conference.
The greater fool theory refers to the idea that one can make money by investing into overvalued assets and selling them for a proﬁt later, because there will always be someone else who will come along and pay a higher price.
Gates also hit out at people willing to spend huge amounts of money on NFTs, casting doubt on their true value as an investment.
Meanwhile, the price of Bitcoin, the industry’s largest cryptocurrency, fell to just over $20,000 on today, posting a loss of more than 55% since the start of the year.
Gates stressed that he’s not involved in cryptocurrencies in any way.
“I’m not long or short any of those things,” said the billionaire entrepreneur.
Last month, during an Ask-Me-Anything session on Reddit, Gates said he doesn’t own any crypto because he prefers investing in “things that have valuable output.”