Microsoft co-founder Bill Gates has once again expressed his loathe for digital assets, this time factoring in non-fungible tokens (NFTs). Speaking at the Techcrunch Sessions: Climate event in Berkley, California, Gates said he is not a fan of crypto and NFTs. Specifically, the American Business Magnate said cryptocurrencies and NFTs are 100% based on the greater fool theory.
The greater fool theory refers to the idea of someone making money by buying 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.
Poking fun at the idea of expensive digital images of monkeys improving the world immensely, Gates said it is “incredible.” He then proceeded to laugh.
— TechCrunch (@TechCrunch) June 14, 2022
He went on to note that he is used to asset classes. He gave examples of a farm, which has output, or a company that makes products. Gates concluded that he is neither long nor short on crypto and NFTs because he is not involved with the industries.
Before this, the billionaire said he did not expect the crypto space to make any significant steps as an asset class. At the time, he noted that Bitcoin and ICOs are some of the crazier, speculative things to invest in.
Crypto and NFTs Continue Going Through a Rough Patch
The crypto and NFT industries put up yearly records in 2021. At its peak, the crypto industry had a valuation of more than $2.9 trillion, according to data from TradingView. Although 2021 has been generally bearish, the crypto market’s capitalization stood above $1 trillion until this week’s crash.
The current bear market is a result of multiple factors. The latest event was Celcius Network announcing the suspension of withdrawals, swaps, and transfers due to extreme market conditions. News of rising inflation and fears of Celsius’s insolvency have seen the crypto market’s cap plunge to $887.95 billion.
On the other hand, NFTs, which are mostly traded in cryptocurrencies, have seen their dollar value plunge significantly.
Apart from the dollar value, the floor prices of leading collections have dropped. For instance, the Bored Ape Yacht Club (BAYC) collection, which Gates referenced, currently has a floor price of 83.5 Ethereum (ETH). This price represents a 12.54% drop over the past seven days.