Bill Gates Mocks Crypto, NFT Trend Amid Bitcoin Price Crash: It's "100% Based on Greater Fool Theory"

At a conference, Bill Gates, the former Microsoft executive, slammed Bored Apes and cryptocurrencies in general. Bill Gates said last week, "Obviously, expensive digital images of monkeys are going to improve the world immensely."

At a Tech Crunch event focusing on climate change and technology, the Microsoft founder turned billionaire philanthropist took part in a question-and-answer session. Gates soon shifted from the snarky remark to a 30-second slam of NFTs and the larger crypto industry.

Bill Gates Does Not Have Any NFT, Crypto

Gates isn't always accurate, but in this case, he's spot on. Although NFTs have been compared to the art market in the past, where so-called investments gain value via time and cultural appreciation, the reality appears to be more akin to a traditional pyramid scam.

Granted, the conventional art market may be a pyramid scheme in and of itself. But at the very least, you have a tangible thing that can't be stolen without leaving a trail. For an investor, the value of an NFT or cryptocurrency will only increase if they can attract more individuals to buy in at a later period than they did, as per Gizmodo.

Beyond the money triangle's underlying structural issue, the wealthy philanthropist also mentioned the inherent danger and ambiguity of blockchain namelessness. "At its heart, it's about evading taxation or any type of government restrictions concerning kidnapping fees or other things."

He stressed that he does not have any NFT or crypto holdings. "I'm not a part of it." "I'm neither long or short any of those things," Gates said. This isn't the first time he's openly mocked crypto.

During a Reddit "Ask Me Anything" session in 2018, he said that blockchain currency was killing people "in a really direct sense," referring to its anonymity and usage in criminal conduct. He previously stated in a 2015 AMA that Bitcoin could not be used as a currency in underdeveloped countries due to its volatility.

Bitcoin, Crypto Prices Plummet

In 2021, Gates warned against ordinary people participating in cryptocurrency. As cryptocurrency values continue to tumble and crypto firms flounder, such forecasts appear to have come true. So, perhaps continue to listen to Big Bill on this one.

His remarks come as the price of bitcoin and other cryptocurrencies plummets. In November 2021, Bitcoin reached an all-time high of $69,000. The world's most expensive cryptocurrency has lost two-thirds of its value since then, falling below $23,000 on Tuesday, according to CNN.

Since Friday, it has lost nearly 25% of its value. Coinbase, a cryptocurrency exchange, has stated that it would lay off 18 percent of its workforce as the digital currency market continues to tank. Gates has previously expressed reservations about cryptography. Gates stated in a 2021 interview that it's one thing for Elon Musk and Tesla to invest in bitcoin, but that doesn't imply normal investors should.

Per MINT, Bill Gates has already attacked cryptocurrency, arguing with Elon Musk last year over whether Bitcoin is too risky for individual investors and the environmental impact of cryptocurrency mining. Higher-than-expected US inflation and the suspension of withdrawals by lending platform Celsius fueled a larger crypto selloff this week. Popular NFT collections are also being hit hard, like the celebrity-favored Bored Ape Yacht Club (BAYC).

The global cryptocurrency market peaked in November 2021 at $2.9 trillion, but it has struggled so far this year. It has lost $1 trillion in value in the previous two months alone as investors fled riskier assets in the face of rising inflation and worries that central bank interest rate hikes will stifle growth, and the market capitalization of crypto has now slipped below $1 trillion.

Bill Gates also defended digital banking initiatives he has backed through his philanthropic institutions, calling them "hundreds of times more efficient" than cryptocurrencies.