Bill Gates says NFTs are ‘100 percent based on greater fool theory’
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I actually agree with him. He has a point, but I'm not sure how him or any other who shares the same thought will make NFT less relevant?
Its always a case-to-case basis. As for NFT, they have made an intelligent non-tangible asset that several wealthy people are willing to pay for! Good for them!
He makes the point about NFTs not adding any real value to humanity:
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” quipped Gates, referring to the flagship NFT project, Bored Ape Yacht Club.
You can argue certain businesses add more value to the world and to people than others (I don't mean every company is good) but there's a value. You could argue an expensive digital image is just as valuable as a non-digital piece of artwork or photograph, but the longevity of that value is pretty fragile, I'd say. There is no real tangible value. It's a subjective perception. If you were ever to sell it you're dependent on another person's subjective perception of that image, in that format. I agree with him, I think it's risky business.
Hah, I had never heard of the term greater fool theory (the financial concept that even overpriced assets can make money as long as you find a bigger idiot to sell them to) - it reminds me of The Emperor's New Clothes fable. I'm surprised to learn this is his opinion though. I agree that it's easy to be skeptical of non-tangible assets, but I would have assumed Bill Gates would have at least dabbled in something more abstract - even if just because. I mean, when you have that much money, you could do it for the sake of the experiment.
Same! I was surprised to read he holds no position in cryptocurrencies or NFTs. Although it's certain he didn't make his money by buying into every new trend.
I can't help thinking that NFTs are the next crypto. That's not to say they're a bad investment. I can't see any objective difference between fine art, vintage cars or any other collectible vs NFTs.
Ultimately markets are driven by fear and greed. As John Maynard Keynes (or was it John Templeton?) said "markets can remain irrational longer than you can remain solvent".
Holding an asset with "tangible benefits" is little comfort when everyone else is trying to dump it!