Bill Gates Says NFTs Are Based on 'Greater Fool Theory' The tech billionaire shared his opinions at a climate conference hosted by TechCrunch.

By Madeline Garfinkle

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

NFTs and crypto don't get Bill Gates's approval.

The tech billionaire dismissed digital assets — particularly NFTs — as "100% based on greater fool theory" while speaking at a climate conference hosted by TechCrunch on Tuesday. In essence: the assets will only go up in price so long as enough investors are willing to pay more for them, making the assets void of any real value when investors aren't present.

Gates went on to jokingly slam the once-prized Bored Ape NFT collection, saying, "Obviously, expensive digital images of monkeys are going to improve the world immensely."

While his vocal disapproval of crypto comes during a particularly low point in the market, Gates has previously criticized the nature of digital assets — even when they were thriving.

In early 2021, Gates voiced hesitation about regular investors shelling out fortunes for Bitcoin. "I do think people get bought into these manias who may not have as much money to spare," said Gates in a 2021 interview. "My general thought would be that if you have less money than Elon [Musk], you should probably watch out."

Related: Bitcoin's Crypto Crash Prompted This Firm to Pause Withdrawals. Here's Why

At the time, Bitcoin was soaring and would soon reach its peak of $64,000 later that year — before steadily declining and dipping to over half of its value since the start of 2022, trading at a base near $20,000.

When it comes to investing, the Microsoft co-founder still believes in the value of putting money towards assets with tangibility, "like a farm where they have output, or like a company where they make products," further reiterating his disbelief in the inherent value of digital assets.

Related: The 5-Hour Rule Used by Bill Gates, Jack Ma and Elon Musk

As cryptocurrencies continue to fall, Bitcoin was trading at a new low of $20,166 on Wednesday, according to Coinbase data — meaning the currency has fallen about 70% in value since its peak just last year.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

This Gen Zer's Stylish Side Hustle Earns About $20,000 a Month and Paid Off His Parents' $200,000 Debt: 'I Enjoy the Hands-Off Nature'

Ray Cao went from working as a barista for $8 an hour to being a successful seller on online marketplace StockX.

Business News

Video Shows Neuralink's First Human Brain Chip Patient Playing Chess: 'It Has Already Changed My Life'

The company, which was founded by Elon Musk, wants to know who's next.

Growing a Business

The Former Owner of the Los Angeles Dodgers Has a New Passion Project. Here's Why He's Fighting to Create a Safer Internet.

Frank McCourt Jr. built a successful career before dedicating his energy to a new passion.

Growing a Business

How to Determine the Right Pricing Strategy for Your Small Business

Discover how small businesses can navigate the challenging terrain of pricing strategy in a post-inflation economy.

Starting a Business

I Was a 25-Year-Old Nurse When I Started a Side Hustle to Combat Anxiety. It Made $1 Million in 7 Months — Then Sold for a Life-Changing Amount.

Sarah Michelle Boes knew there had to be a better way to prepare for her stress-inducing nurse practitioner's exam — so she created it.