The biggest fool theory is a concept that can be applied in different industries, but it is most interesting when used as an example of ways to invest. The idea behind the theory is that you can invest in something stupid, but you can still make a profit if someone is stupider than you and invests in the nonsense you invested in. For Bill Gates, founder of Microsoft, cryptocurrencies and NFTs are based on this theory.
During an interview with TechCrunch, Gates discussed his investment options, clearly not very confident in what the crypto market has to offer.
“I don’t know, obviously limited and expensive digital monkey images will surely improve the world immensely,” he said in a sarcastic tone.
Bill Gates tells us what he really thinks of Bored Apes at #TCClimate: pic.twitter.com/vBc8BaaTup
— TechCrunch (@TechCrunch) June 14, 2022
Continuing his response, he went on to say that he is more used to asset classes that “produce something” and that the crypto market and NFTs are basically a failed investment, even depending on the illegal uses of these assets.
“I’m used to an asset class where, like a farm, they make products, which is a company that makes products. As an asset class, cryptocurrencies are 100% based on the dumbest theory, that someone will pay more than I paid. And there is still this anonymity to evade the tax (…), well, I’m not involved in anything,” Gates said during the interview.
However, unsurprisingly, this is an exaggerated position that is in line with what many think about the crypto market, especially those who are not positive about the sector as a form of investment.
With cryptocurrencies in decline, looking at Bill Gates’ opinion with an air of understanding is not uncommon, after all, it really does seem like everything is falling apart and the dumbest are left behind.
At times like these, it’s worth remembering that the market in the past has moved in cycles, up and down, so it’s also easy to understand the optimism of many others who are watching.
The most important thing is to always research your investors and be very careful what influential names recommend (or criticize).
