Bill Gates Says Cryptocurrency And NFTs Are A Scam

(NewsGlobal.com)- At a recent tech conference, billionaire Bill Gates explained why he isn’t “bullish” on digital assets like cryptocurrency and NFTs.

While speaking at a recent TechCrunch Conference, Gates said the asset trends are “100 percent based on greater fool theory,” the idea that investors can profit from overvalued assets provided people are willing to bid them higher.

The Microsoft founder said he isn’t “long or short” on crypto and sarcastically said of the Bored Ape NFTs that “expensive digital images of monkeys” will “improve the world immensely.”

Gates said he prefers asset classes that have tangible output or products, like farms or companies.

He suggested that those who buy into “manias” like crypto or NFTs often don’t have much money to spare.

Currently, the crypto market has been in freefall. Bitcoin has fallen from an all-time high price of $69,000 in November 2021 to below $20,000 on Saturday.

The crypto market has been experiencing turmoil in the midst of broader turbulence in the financial markets. Last week was the worst week for Wall Street since the 2020 crash during the early days of the COVID pandemic.

Investors have been dumping riskier assets as the Fed has raised interest rates to cool inflation. And while higher interest rates may bring down inflation, they also increase borrowing costs for businesses and consumers, pushing down stock prices and investments in cryptocurrencies, thereby increasing the likelihood of a recession.

Overall, the market value of crypto assets has dropped from $3 trillion to less than $1 trillion. As of Saturday, data from coinmarketcap.com showed crypto’s global market value hovering at around $816 billion.

Naturally, the cascading crypto meltdown is sparking calls for the government to regulate the industry. Last week, the Senate introduced bipartisan legislation to impose regulations on digital assets. In turn, the industry has increased its lobbying efforts, pouring $20 million into congressional races in the upcoming midterm elections.