Bill Gates has stated that he does not trust the hoopla surrounding NFTs and cryptography. As part of Climate 2022’s TechCrunch sessions on Tuesday, the billionaire discussed digital assets.
When it came to the Bored Ape Yacht Club NFTs, Bill Gates made harsh comments about how excited people were for the event and how celebrities like Snoop Dogg, Eminem, and Shaq supported it.
Gates went on to talk about NFTs and cryptocurrencies, saying that the market was driven solely by emotion. To put it another way: “As an asset class, it is built on the biggest fool assumption—that someone else will pay more than I do.”
When people buy assets, they do so with the expectation that someone else will pay a higher price for the asset in the future. As soon as buyers stop taking lower offers, the asset’s value drops, leaving the owner with nothing.
Since its inception, Gates has been an outspoken sceptic of Bitcoin in general. For the rich philanthropist, crypto’s value comes down to how much people are prepared to pay for it. He claims that crypto is nothing more than a fad sparked by users.
Despite this, the cryptocurrency market is still in the negative, and it’s only going to get worse. Floor prices for NFTs have taken a considerable toll as Ethereum’s value has also dropped.