A number of stakeholders asked us about the news report that "Bill Gates Says NFTs and Crypto Are ‘100%’ Based on Greater Fool Theory".
This report is an example of bad journalism. Mr. Gates was talking about "monkey NFTs", and I fully share his opinion. The reporter, however, expanded his response to the entire "crypto" category, probably to sensationalize her article.
While Mr. Gates is not personally involved in a crypto-market, we don't think he'd ever say that crypto has no value as a FinTech technology. In fact, crypto is simply the next step in the evolution of money from sea shells to gold, then to paper bills, then to digital currency, which is the dominant form of the $90T money market today. Crypto technology takes the "digital currency" concept to a new level, making financial transactions impossible to alter and easier to process. As a superior technology, crypto is expected to become the dominant form of money, reaching a combined market valuation of over $30T.
Mr. Gates justly alluded to the fact that Bitcoin was created by an anonymous person to provide anonymity needed mostly for shady and illegal transactions. But Bitcoin has grown way beyond that shady origin as it proved to be an excellent currency: scarce and easy to exchange.
For centuries, gold was deemed to be the perfect form of money as its scarce, easy to store, and easy to exchange. Bitcoin proved to be better in all those aspects. Whereas the supply of gold keeps increasing at an unpredictable rate due to the discovery of new gold deposits and improved mining technologies, Bitcoin is mathematically limited to 21M coins. Bitcoin does not require physical storage (the famous vaults of Swiss banks, Fort Knox, etc.) or expensive physical transportation. That is why Bitcoin exceeded a $1.3T valuation last year.
Yet, since June of 2018, we've been publicly stating that "investments in Bitcoin can flame out real fast". Our prediction was based on the observation that, while the total supply of bitcoins is limited, the total supply of cryptocurrencies is unlimited. Hundreds of me-too cryptocurrencies, including the famous doggy coins, started to flood the market, dooming the concept of cryptocurrency based on nothing more than its code. We can see that Bitcoin and other assetless coins would be eventually replaced by coins that are backed by growing assets that pay dividends to their owners, and we introduced our Unicoin to lead this change and take a sizable slice of the total currency market.