Gates said that he prefers to invest in farming or companies that offer products, and described NFTs as "an asset class that's 100% based on greater fool theory that someone's going to pay more for it than I do." Greater fool theory is anthat asserts one can make a profit from an overvalued asset as long as there's someone out there willing to buy it for more than what you paid. Eventually, the market will flood and run out of "fools" who are on board with that asset's money-making wave.
Pointing to issues about taxation and government regulation, Gates made it clear he doesn't invest in NFTs or any other forms of crypto. "I'm not involved in that," he stated. "I'm not long or short in any of those things." At one point in the discussion, Gates joked that digital images of monkeys would help the world -- an acknowledgement of Bored Ape Yacht Club's pervasive presence in the realm of NFTs.
The comments aren't the first time the Microsoft co-founder has spoken out about crypto. In a 2021 interview with Bloomberg Technology, Gates said that such investments are too risky and cautioned against bitcoin. He advised investors who have less money to burn than Elon Musk to be wary of its volatility. On the flip side, Gates shared his approval of digital money where transactions can be tracked and regulated, especially in developing countries.