Billionaire and Microsoft co-founder Bill Gates slammed cryptocurrency projects, specifically nonfungible tokens or NFTs, at the climate conference on June 14.
Gates believes that these digital assets are nothing more than shams and are based on “the greater fool theory,” an idea that argues prices of commodities can go up as much as they can as long as someone is foolish enough to buy them.
The billionaire commented how digital images of monkeys could “immensely” help the planet. He made this statement while sharing his thoughts about NFTs and other similar digital assets at the TechCrunch-hosted conference in Berkeley, California.
Gates spoke as the founder of Breakthrough Energy Ventures, a 2015-started fund that focuses on preventing climate change by eliminating greenhouse gases. However, he added that it is difficult to hire engineers to work for industries that aim to emit lesser greenhouse gases.
This is not the first time the Microsoft billionaire criticized cryptocurrency. Last year, he debated with Tesla and SpaceX CEO Elon Musk about Bitcoin. Gates raised concerns about the risk of Bitcoin to retail investors and the harmful effects of coin mining on the environment. In a Bloomberg interview, he mentioned that Elon Musk and Tesla investing in bitcoin is one thing, but that does not mean average investors should follow suit.
The Ominous State of Cryptocurrency As Gates Made Comments
Gates isn’t a crypto fan, as Bitcoin plummeted 15% last Monday and 5.4% by Tuesday. The highest value was $69,000 last November 2021, but it plunged to $23,000. Moreover, the most valuable crypto lost 60% of its value and 25% last Friday.
These and more are massive blows to NFT collections, even the popular Bored Ape Yacht Club or BAYC that celebrities seem to endorse fondly.
Coinbase, the crypto exchange platform, had to lay off 18% of its employees because the digital marketplace seems to be falling apart.
Meanwhile, Gates defended and preferred digital banking more. These digital efforts are the ones he supported with the help of his foundations. The billionaire philanthropist added that they are a “hundred times” better than cryptocurrencies in terms of effectiveness.
The Breakthrough Energy Ventures founder shared that he liked investing the old-fashioned way. Specifically, he would rather invest in farms that produce crops or companies that make products.