American business mogul and Microsoft co-founder Bill Gates has criticized non-fungible tokens (NFTs) for not providing society with any use cases. In his opinion, cryptocurrencies and digital collectibles are based on the “greater fool theory” and people should be careful when dealing with them.
Cryptocurrency Criticism Again
During a recent climate conference, American billionaire Bill Gates repeated his anti-cryptographic stance. He sarcastically remarked that non-fungible tokens such as “digital images of monkeys would greatly improve the world.”
By his comments, Gates was most likely referring to the Bored Ape Yacht Club (BAYC), a popular collection of NFTs built on the Ethereum blockchain and depicting various caricatures of monkeys. Over the past few months, the collectibles have become the subject of interest of many celebrities such as Madonna, Neymar and Serena Williams, who have spent hundreds of thousands of dollars to purchase some of them.
Gates also gave his explanation of how the cryptocurrency industry works, as he sees it as a typical example of the “greater fool theory”:
“As an asset class, it’s 100% based on the bigger fool theory – that someone will pay more for it than me.”
The concept is that people ignore price estimates, earnings reports, and other important information, only to sell their products to a “fool” willing to pay more than the owner previously spent. As soon as the market runs away from the “fools”, prices fall and many investors are left with overvalued assets that no one wants to buy.
A month ago, Gates admitted that he does not own cryptocurrencies. He said he invests in things with “valuable returns”, arguing that digital assets don’t have those qualities.
Other opinions about NFTs
While Bill Gates has become a trend, he is not the only critic of non-fungible tokens. Sportscaster, comedian and popular podcast host Joe Rogan said last year that he was not interested in digital collectibles. In addition, he described them as a cryptocurrency “hustle”.
Rogan didn’t understand how people spend colossal amounts of money on digital art when they can be downloaded for free:
“Here’s my problem, I can have this photo and I can have it on my phone.”
Earlier this year, American rapper Kanye West urged his fans to stop asking him to “do NFT”. He said he was committed to building products for the “real world” rather than the digital one. However, a few months later, the musician changed his position and filed for the NFT and Metaverse trademarks.
Featured image courtesy of AAgency
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