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According to Bill Gates, NFTs are based on the “bigger chump theory”

NFTs are currently a controversial topic: some see infinite possibilities in them, others condemn them as a scam. Publishers like Ubisoft want to implement them in games, independent developers are quite skeptical and also warn of the possible consequences for climate protection. Microsoft founder and billionaire Bill Gates has now commented on the topic. According to Gates, NFTs are 100% based on the “Great Fool Theory”.

If that theory tells you nothing: that theory assumes that the price of a financial product, e.g. B. a share is determined solely by the fact that it can be sold at a later date at a higher price. The rest is not important. Therefore no intrinsic / neutral value is attributed to financial products. The person who pays you the highest price is just the “biggest sucker” of you.

Therefore, according to the Greater Fool Theory, it can also make sense to buy speculative properties at very high values. There just has to be a market or buyer that will fare better. The “fear of getting lost” (FOMO) also plays a role here. Bill Gates now believes that the NFT market is 100% based on the Big Fool Theory. That’s why he personally has no interest in investing in NFTs or cryptocurrencies, which are usually also associated with that theory.

The billionaire says he prefers to invest in assets that actually produce something real, eg. B. Factories, farms or even companies that produce products. Also, Gates couldn’t help but taunt what is arguably the best known NFT project, the Bored Ape Yacht Club: “Obviously, expensive digital monkey images will improve the world immensely,” he joked. Strictly speaking, however, NFTs are not even equated with the images themselves, but rather with their linking into the blockchain.

Incidentally, Gates warned of cryptocurrency volatility as early as 2021, when the boom had just peaked. As we now know, he was right about that.

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