What do you think about the new trend of NFT’s? Bill Gates, CEO of Microsoft and co-founder of the Bill & Melinda Gates Foundation. Believes that non-fungible tokens (NFTs) are more than a trend. Bill Gates thinks they’re quite speculative, but what does he know? We can trust him though, he’s the richest man in the world, right? What are NFTs? and what is the future of NFT’s? Let’s dive in what Bill Gates thinks about NFT’s
What are NFT’s
NFTs are Non-Fungible Tokens, a more descriptive term is ERC-721 Token. These tokens each have different values based on a variety of factors. It is not like CryptoKitties where all Kitties are created equal. Each cat in that game has the same value as any other cat in that game. All NFT’s designed uniquely. And, as such, hold different value to collectors or gamers who collect them based on how rare they are among other reasons. I am sure you’ve heard about CryptoKitties overloading Ethereum’s network during its release back in December 2017.
Alternate to Paper Money?
NFT’s, or Non-Fungible Tokens, are one of several types of blockchain tokens. Created as part of Ethereum’s ERC721 standard, they are distinguished from fungible tokens by their unique properties and data. Essentially they are each a unique token. That can be traced back to its source like real estate titles in a land registry. This fact has prompted speculation that NFT’s could become an alternative to paper money at some point in future. If they were to become widely accepted as mediums for exchange. A big hurdle facing their adoption is how they would be integrated into centralized banking systems that exist today due to their lack of frangibility.
The problem with NFT’s
The problem with non-fungible tokens is that you have to find a buyer for each one. I have heard it said that an NFT can be sold to any other buyer at any time, as long as they pay more. In other words, there is no guarantee that a different greater fool will be willing to buy your token—just someone who thinks they are even greater than you do. People who buy NFTs may think they will sell them later on when their value increases, but that might not happen if someone else buys them first or if everyone is waiting for the value to increase instead of using their tokens for something in their games.
What Bill Gates thinks about NFT’s
Bill Gates was available at an event that was precisely about Climate change, where on asking by host (TechCrunch). Bill Gates said that “NFT’s are completely based on the greater Fool theory.” According to this an overpriced asset can also make money as long as there is a bigger idiot to buy that asset from you. “Moreover, I would like to invest in tangible assets like farms or factories, even a company where they manufacture products,” He added. He said that this strategy is simply to save oneself from taxation.
What are the Outcomes of that thought of Bill Gates
Bill Gates thinks that NFT is a kind of speculation, it is riskier than any other investment because an investor does not expect to get profits from someone who needs such an asset but from someone who thinks he will make a profit. This thought getting sensations over the internet. There is a wide decrease in the values of the NFTs have fallen sharply. Some of the biggest projects are also facing decreasing value of their arts. At the end, i just wanted to add that NFT’s are the future anyhow, NFT buyers are a true believers of greater-fool theory, and there will be a bigger idiot out there, who can buy their NFT’s.