Crypto is Based on the Greater-Fool Theory - Bill Gates
Cryptocurrency has recently been under scrutiny from Bill Gates, who believes it is built on a greater-fool concept.
According to Investopedia, the greater-fool concept is as follows:
“Argues that prices go up because people can sell overpriced securities to a ‘greater fool,’ whether or not they are overvalued. That is, of course, until there are no greater fools left.
Investing, according to the greater fool theory, means ignoring valuations, earnings reports, and all the other data. Ignoring the fundamentals is, of course, risky; and so people subscribing to the greater fool theory could be left holding the bag after a correction.”
Gates made an effort to enter the non-fungible token market (NFTs). Using the NFT initiative known as the Bored Ape Yacht Club, he even created a reference to apes clothed in various clothes and styles.
The following are some instances of NFTs, according to Bill Gates:
“100 percent based on greater fool theory.” He also made clear that he holds no positions in cryptocurrencies and expressed suspicion of assets made to “avoid taxation or any sort of government rules.”
When Bill Gates expresses his opinions on cryptocurrencies, the market goes through a rough patch. As a consequence of the current market downturn, a large number of digital assets have seen their value plummet.
Continue reading if you're looking for more cryptocurrency-related news for Wednesday.