Bill Gates stated that cryptocurrencies are "100% based on the greater fool theory." This theory is an idea in the financial world that suggests it is possible to make money with overvalued assets — such as real estate, stocks, or cryptocurrencies — as long as there is always someone willing to pay more for them, that is, a "greater fool."
In Gates' view, the value of cryptocurrencies is not based on real assets or cash flows, as is the case with shares of companies that generate profits. Instead, many people buy cryptocurrencies hoping that another buyer will come along later and pay more — not because the asset "is worth more," but because they believe they will find someone even more optimistic (or foolish, according to the theory).
Gates' criticism aligns with his skepticism towards the crypto market, which he sees as speculative and vulnerable to bubbles. He has also expressed concern about the fact that many investors are entering this market without understanding the real risks.
