What is the greater fool theory?

An analogy explains the greater fool theory: You don’t have to run faster than the bear to get away; you just have to run faster than the other guy. The greater fool theory of economics suggests that it doesn't matter at what price you buy an asset, so long as there is some "greater fool" out there who will buy it for more.

Are cryptocurrencies based on greater fool theory?

Microsoft co-founder Bill Gates said he thinks cryptocurrencies and NFTs are “100% based on greater fool theory.” “Expensive digital images of monkeys” will “improve the world immensely,” Gates joked, referring to Bored Ape NFTs. The tech billionaire said he’s “not involved” in crypto, “I’m not long or short any of those things.”

Is crypto a bubble?

The point Gates, Buffett, and various economists make is that crypto offers no “real-world” value. Thus, cryptocurrency is simply a bubble in which people try to out-fool each other. It’s nothing more than a money-making scheme to buy and sell higher. When people get wise to this fact, crypto is going to collapse.

Is Bill Gates involved in cryptocurrencies?

The tech billionaire said he’s “not involved” in crypto, “I’m not long or short any of those things.” Bill Gates is not a fan of cryptocurrencies or non-fungible tokens.