Billionaire Bill Gates says cryptocurrencies are shams based on ‘greater fool theory’

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Microsoft founder billionaire Bill Gates on Tuesday lashed out at cryptocurrency projects such as nonfungible tokens calling them shams “based on the greater fool theory” on Tuesday.</p>
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The Greater Fool Theory is the idea that, during a market bubble, one can make money by buying overvalued assets and selling them to a :greater fool”s who is willing to pay an even higher price. But inevitably the bubble has to burst and prices come crashing down.</p>
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“Obviously, expensive digital images of monkeys are going to improve the world immensely,” Gates said sarcastically while speaking at a climate conference event in Berkeley, California hosted by TechCrunch.</p>
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The statement came as Bitcoin plunged more than 15% on Monday and another 5.4% onTuesday, part of a broader crypto selloff.  Popular NFT collections including the Bored Ape Yacht Club (BAYC) are also being battered.</p>
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Gates has been a strong critic of crypto and taken on Tesla founder Elon Musk on the issue last year over whether Bitcoin is too risky for retail investors. Musk has played a big role in popularising cryptocurrencies.</p>
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<strong>Also read: <a href="https://www.indianarrative.com/economy-news/imf-experts-warn-of-danger-posed-by-cryptocurrencies-134893.html">IMF experts warn of danger posed by cryptocurrencies</a></strong></p>