Bill Gates spoke at an event in California. Photo: Bloomberg
Bill Gates Don’t miss out on opportunities to highlight yours disagreement with the cryptocurrency market and companies associated with these digital assets. He has said this many times, and every time he appears publicly he does it vehemently against the cryptocurrency world. Now, his criticisms have also targeted the non-fungible token market (NFT)..
This week, in full decline in the value of bitcoin – and consequently, the rest of the cryptocurrencies – Gates directly rejected the NFTs“Obviously, the expensive digital images of monkeys will greatly improve the world,” said the Microsoft founder ironically at an event in Berkeley, California, organized by TechCrunch.
During the event also Gates he defended the efforts of digital banking who support his philanthropic foundations, which he described as “much more efficient” than cryptocurrencies.
This isn’t the first time Gates has expressed his opinion on cryptocurrencies. In an interview with Bloomberg Technology in February 2021, the billionaire and co-founder of Microsoft expressed his distrust of the rise of Bitcoin due to the volatility of its value.
In this sense, Gates said its value could be influenced by something as simple as a tweet from Tesla CEO Elon Musk.
On this occasion, he addressed small and medium-sized investors: “If you don’t have as much money as Elon Musk, be careful”. “Elon has a lot of money and is very sophisticated, so I’m not worried about his cryptocurrency going up or down randomly,” he said.
Bored Ape, the most popular NFT. Photo: REUTERS.
“I’m worried about people who get carried away and don’t have a lot of money to spare, then I am not optimistic about bitcoin“According to the founder of Microsoft.
Now, in full decline in the value of bitcoin, the billionaire has once again turned down this type of investment. Bill Gates not only criticized cryptocurrency investments, but also called a farce to non-fungible tokens, “based on the theory of stupidity,” he said at a climate conference in Berkeley, where he was one of the founders of Breakthrough Energy Ventures.
During his speech, Gates also discussed the climate emergency and the difficulty of finding Silicon Valley engineers working in industries such as chemicals and steel, which emit fewer greenhouse gas emissions.
Bill Gates: The theory of stupidity and cryptocurrencies
The Microsoft founder once again showed his distrust of the cryptocurrency world. This time around, the center of criticism was the NFTs. Photo: AP
According to Gates, the rise of cryptocurrencies is based on the stupidity theoryor which would be the same, the theory of “there is always someone dumber than you”. This is a widely used expression in the stock markets that is based on a very basic and apparently easy to understand principle: you can make money if you buy an overvalued stock because there will always be. “someone dumber” willing to pay a higher price.
In the theory of stupidity, some lose and others win. It works while you can sell a stock at a higher price than the one you bought. The problem is if you didn’t sell in time, that is, before the price collapsed. Then, there won’t be anyone dumber than you, or yes.
The stupidity theory it is a very risky practice and often exacerbated by the herd mentality, that is when a predetermined idea spreads in society.
In the case of cryptocurrencies, it has extended to a series of stories based on the “coinage” of those who became rich thanks to these digital assets. Then a bubble is produced and during the night, the value plummets to unsustainable levels.
Bubbles are very common phenomena in our markets which have their origin in speculation. They are characterized by an uncontrolled and prolonged increase in the price of an asset.
Cryptocurrencies: Bill Gates and Elon Musk have opposite positions.
There have been several bubbles throughout history: from the collapse of 1929 to the famous “housing bubble” of the 2007 financial crisis. We are now experiencing the bursting of the digital asset bubble.
Gates’ statements come in the midst of a cryptocurrency crash and his predictions aren’t that far off. The first effects of this decline in value are already starting to be felt in one of the largest crypto-active exchange platforms: coinbase. The company announced that it will lay off 18% of its workforce, about 900 out of a total of 5,000 jobs.
Likewise, NFT prices have also fallen significantly. One of the largest NFT markets in the world, the Bored Ape Yacht Clubsuffered an unprecedented collapse, reducing its value by more than half.
With information from La Vanguardia.
SL
Source: Clarin
