Microsoft co-founder Bill Gates criticized non-fungible tokens and cryptos.
Related: Bill Gates: I don't have bitcoin and I treat it neutral
At a TechCrunch Talk, the business magnate said he finds that the sector is 100% dependent on greater fool theory. The phrase is used in finance to convey the idea that overvalued assets will grow in price when there are some investors ready to pay more for them.
Gates made a sarcastic comment about the popular NFT collection Bored Ape Yacht Club, saying “Expensive digital images of monkeys would improve the world immensely."
Bill Gates tells us what he really thinks of Bored Apes at #TCClimate: pic.twitter.com/vBc8BaaTup
— TechCrunch (@TechCrunch) June 14, 2022
One of the benefits of NFTs is that they prove ownership of artworks, sports collectibles, and other digital assets due to blockchain technology. However, critics say cryptos are overhyped and digital currencies consume a lot of energy. Gates said he isn't engaged in crypto in any way.
Prices of cryptos and NFTs continue to be down. Currently, Bitcoin trades at $21,300, and Ether at $1,100. An entry level BAYC NFT fell below $100,000, its lowest price since August 2021.
On the other hand, interest in the sector remains high. Trading volume of popular NFT collectiones went up in the last 7 days.