American business tycoon and Microsoft co-founder Bill Gates has criticized non-fungible tokens (NFTs) for not providing any use case to society. In his opinion, cryptocurrencies and digital collectibles are based on “the biggest fool theory”, and people should be careful when dealing with them.

Criticizing Crypto Once Again

During a recent climate conference, US billionaire Bill Gates reiterated his stance against cryptocurrencies. He sarcastically noted that non-fungible tokens, such as “digital images of monkeys, will greatly improve the world.”

With his comments, Gates was most likely referring to the Bored Ape Yacht Club (BAYC), a popular collection of NFTs built on the Ethereum blockchain depicting different cartoon monkeys. In recent months, the collectibles have become a point of interest for numerous celebrities such as Madonna, Neymar and Serena Williams, who have spent hundreds of thousands of dollars to buy some of them.

Gates also gave his explanation of how the cryptocurrency industry works, as he sees it as a typical example of “the big fool theory”:

“As an asset class, it is 100% based on the biggest fool theory: that someone is going to pay more for it than I am.”

According to the concept, people ignore price valuations, earnings reports and other vital information only to sell their products to a “fool” willing to pay more than the owner had previously spent. Once the market runs out of “fools”, prices crash 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 that he invests in things with “valuable results”, arguing that digital assets have no such qualities.

Bill Gates, Source: Business Insider

Other views on NFTs

Despite emerging as a trend, Bill Gates is not the only critic of non-fungible tokens. Last year, sportscaster, comedian and popular podcast host Joe Rogan said he wasn’t interested in digital collectibles. Furthermore, he described them as a cryptocurrency “hustle”.

Rogan didn’t understand how people spend colossal sums of money on a piece of digital art when they can download it for free:

“Here’s my problem, I can have that photo and I can have it on my phone.”

Earlier this year, American rapper Kanye West urged his fans to stop asking him to “NFT”. He said that he is committed to creating products for the “real world” and not for the digital one. However, several months later, the musician changed his stance on him and filed NFT and Metaverse trademark applications.

Featured image courtesy of AAgency

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This post Bill Gates believes that cryptocurrencies and NFTs are based on the theory of the greatest fool

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