Cryptocurrencies and non-fungible tokens do not appeal to Bill Gates. Here is what he says. 

(Photo : Jemal Countess/Getty Images for TIME)
NEW YORK, NEW YORK - JUNE 07: Bill Gates speaks onstage at the TIME100 Summit 2022 at Jazz at Lincoln Center on June 7, 2022 in New York City.

The Microsoft co-founder said that the hype around crypto is "100 based on greater fool theory," alluding to the premise that overvalued assets will rise in price when enough investors are ready to pay more.

Gates made these remarks at a TechCrunch talk on climate change last Tuesday.

"Expensive Digital Photos of Monkeys"

Gates said sarcastically that "expensive digital photos of monkeys" will benefit the world "immensely," throwing shade at the popular Bored Ape Yacht Club NFT collection.

NFTs are non-transferable tokens that can't be traded for each other. They're frequently promoted as a technique to establish ownership of digital items such as art, sports, and other memorabilia.

However, given the nature of cryptocurrencies to be overpowering, some believe they are overhyped and possibly damaging to the environment. Several NFTs are constructed on the Ethereum network, the second-largest token.

Gates stated he isn't involved in cryptocurrency, saying, "I'm not long or short any of those things."

Gates has previously blasted cryptocurrency, arguing with Elon Musk last year about whether Bitcoin is too risky for regular investors and the environmental impact of cryptocurrency mining.

The billionaire also addressed the problem of getting Silicon Valley engineers to work in businesses like chemicals and steel production that need to reduce greenhouse gas emissions while speaking Tuesday as the creator of Breakthrough Energy Ventures, the climate-focused fund he founded in 2015.

He also lauded digital banking initiatives backed by his philanthropic institutions, calling them "hundreds of times more efficient" than cryptocurrencies.

Read also: Bill Gates Reportedly Poured Millions to Dark Fund Against Elon Musk-Tesla CEO is ANGRY

The Current State of Crypto

In May 2018, the billionaire stated that he would be eager to short Bitcoin if he could. Gates is yet to welcome the rise of cryptocurrencies, as he recently lamented their scarcity of fundamental value in a Reddit post.

This week, cryptocurrency prices plummeted after Celsius, a crypto lending service, halted all account withdrawals. The fiasco has stoked concerns about Celsius' impending insolvency, as well as probable ripple effects across the crypto market. Celsius, for one, claims to be "working round the clock" to restore its services.

Following the crash of UST, called "stablecoin," that was supposed to be worth $1 - and luna, its sister token, the crypto industry was already reeling in with the market brunts. Both cryptocurrencies were worth approximately $60 billion at their peak.

Bitcoin was last seen at $21,107 on Wednesday, dropping 7% in the previous 24 hours. Since the beginning of 2022, the world's largest cryptocurrency has lost more than half of its value, according to CNBC.

Related Article: Bill Gates' Old Interview Goes Viral After He Warns About Elon Musk's Influence on Crypto Investors 

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Written by Joaquin Victor Tacla