(Kitco News) As crypto investors watched their market crash dramatically this week, Microsoft co-founder Bill Gates likened NFTs (non-fungible tokens) to “the biggest fool theory.” This is what he meant.
Digital assets like NFTs are “100% based on the kind of dumb theory that someone is going to pay more than me for them,” Gates said during a TechCrunch conference this week.
The Microsoft co-founder was answering the cryptocurrency question when he made fun of the Bored Ape Yacht Club, a collection of non-fungible tokens built on the Ethereum blockchain. The collection consists of profile pictures of cartoon apes generated by an algorithm, which are known to sell for a very high price.
However, after the crypto crash, the lowest price of a Bored Ape Yacht Club NFT has fallen below $100,000, the first time since August 2021, according to NFT Price Floor.
Gates quipped sarcastically: “Expensive digital images of monkeys are going to improve the world immensely.”
He also added that he prefers more traditional types of investments, including farmland or stocks. “I’m used to asset classes, like a farm where they have production, or like a company where they make products,” Gates said.
But Gates is neither short nor long crypto, adding that he is “not involved in it.”
“At its core, this anonymity of avoiding taxes or any kind of government rules on kidnapping fees. I’m not involved in that. I’m not long or short on any of those things,” he added.
Boring monkeys are doubling down now https://t.co/Z8WiG5Orh7
—Izabella Kaminska (@izakaminska) June 14, 2022
After the cryptocurrency crash this week, Bitcoin is down nearly 70% from its November all-time high of $69,000. The world’s largest cryptocurrency was last traded at $21,011.
Meanwhile, Ethereum is down 77% from its November all-time high of $4,878. The second largest cryptocurrency in the world was last at $1,112.
Crypto’s overall market capitalization fell to $942 billion after topping $3 trillion in November.
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