Microsoft founder Bill Gates doesn’t think much about NFTs and cryptocurrencies. “Obviously expensive digital images of monkeys will improve the world situation immensely,” he said at a conference in the United States, sarcastically referring to the Bored Ape Yacht Club (BAYC) NFT collection. According to him, the value of NFTs is “100% based on the great fool theory”.
The theory says that if you buy an overpriced financial product, it doesn’t matter at all, as long as you can find a bigger idiot who will buy you even more expensive. The Sina Estavi company, for example, had to realize that such a thing has its limits: last year it bought an NFT on the first tweet written by Jack Dorsey on Twitter for 2.9 million dollars. His attempt to push back the NFT was less successful. The current highest bid at Open Sea is 0.02 Ether, the equivalent of US $ 24.05.
No added value for society
“I am used to investments such as a farm that produces something or companies that produce products”, Gates explained. It is not invested in the cryptocurrency markets with neither long nor short positions. Likewise, he previously stated that he doesn’t invest in cryptocurrencies because they don’t produce anything of value to the company. He had previously been critical of cryptocurrency anonymity and warned private investors against investing.
In the wake of the recent price plunges in the cryptocurrency market, NFT trading has also apparently cooled down. According to data from the Dappradar platform, trading volumes of popular NFT image collections like BAYC or Moonbirds have plummeted over the past 30 days. The leading trading platform Opensea also experienced a decline in trading volume. According to Nftpricefloor.com, the minimum prices for BAYC-NFTs on Opensea were the equivalent of less than $ 100,000 at the start of the week, last time in March. In the course of a slight recovery in the cryptocurrency market, prices have recently started to rise again.
NFT stands for non-fungible token. Fungibility means the interchangeability of an asset. Unlike units of a cryptocurrency like Bitcoin or Ether, these are entries in a blockchain cash book that shouldn’t be interchangeable. The original idea is to use such tokens to represent ownership of a thing or right. At the moment, most importantly, NFTs are placed on digital images and exchanged quickly, without anything changing in the lossless copy of these images.