Bill Gates doesn't think cartoon apes are a good idea.
The market for cryptocurrencies and NFTs is driven by sentiment, according to Gates. He said that the asset class was based on the theory that someone would pay more for it than he did.
People invest in overvalued assets in the hope that someone else will come along and pay more for it.
When there is no one willing to pay a higher price, the markets are driven by a belief that there will always be someone willing to pay more. When asset prices decline rapidly, investors are left with worthless assets.
Gates has been critical of the lack of value in cryptocurrencies. Gates said in a question-and-answer session in May that the value of the digital currency was just what someone else would pay for.
The prices of cryptocurrencies are crashing. For the year, it's down over 50%. As trading volumes decrease, a number of once-bullishcryptocurrencies are laying off employees. Celsius Network and Terraform Labs' stable coins are sinking because of the sinking values of the digital currency.
The value of NFT is also going down.
The NFT index is down 30% for the week. The entry level of BAYC NFT fell below $100,000 on Tuesday. The floor price has fallen since the beginning of the year.
More people may see NFTs as a bargain, with trading volume at Open Sea up 171% over the past day.
Gates ignores the volatility of the market.
I have nothing to do with that. He said he wasn't long or short.
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