Bill Gates said this week that expensive digital images of monkeys would improve the world. The Microsoft founder spoke about climate change and technology at an event.
Gates pivoted from the sarcastic bit to a 30 second take on the concept of NFTs and the broader market.
He said that he was used to asset classes like a farm or a company. The idea that the only way to make a profit on your non-fungible-token is to find someone stupid enough to spend more money on it than you did was described by him.
Gates is right about this one. The reality of NFTs is closer to a pyramid scheme than it is to the art market. The art market may be a pyramid scheme. It is possible to get a physical object out of it that can't be stolen.
If more people buy in at a later stage of the game than they did at the beginning, the value of an NFT will go up. Imagine a group of people below a single person.
The billionaire philanthropist mentioned the inherent risk and sketch factor of the money triangle. You don't have to pay taxes or government rules about kidnapping fees, that's what it's about.
He said that he doesn't have any investment positions in NFTs orcryptocurrencies. I have nothing to do with that. I am not a long or short person.
This isn't the first time Gates has spoken negatively about something. He referred to the anonymity of the currency and its use in criminal activity when he said it was killing people. He said that the volatility of the currency couldn't be used in poor countries.
Gates once again warned normal people not to invest incryptocurrencies. The warnings seem to have worked out as the value of cryptocurrencies continues to fall. Don't forget to listen to Big Bill on this one.
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