Bill Gates recently stated that the cryptocurrency phenomenon is largely based on the greater fool theory. According to investopedia.com, the theory “argues that prices go up because people are able to sell overpriced securities to a “greater fool,” whether or not they are overvalued. That is, of course, until there are no greater fools left”.

Coming from one of the richest people in the world, this is hard to ignore. But Bill Gates has had his fair share of controversies along the way. One of the more significant ones is his foundation’s penchant in funding journalistic organizations. Which seemingly, comes across as influence peddling. As well as butting heads with anti trust laws.

But is his statement regarding the crypto space a genuine concern for the investing public or a jab to protect existing interests?

Decentralized finance is making huge strides in the finance industry. Why it is possible to send funds across the world through defi protocols with just a few clicks and much MUCH cheaper is unheard of in traditional finance. A facet of cryptocurrency that a lot of people recognize and subscribe to. That’s probably why there is a boatload of investors in it.

Should I attempt to put his statements in context? In this article from CNBC, it seems he was referring to NFT’s. But then again towards the end of it, it explicitly states that Gates “is neither long nor short” in any of the crypto products out there, an indication of the absence of any significant belief in it and what it espouses.

Dismissing the whole industry as a sham is a huge mistake. Yes, it doesn’t help that some weaknesses have been highly exposed in the crypto space. i.e. Solana and its constant shutting down, UST/Luna Crash and now Celsius. But there are other defi protocols out there that are trying to do the industry’s objectives some justice. Think peer reviewed solutions, forks, enhancements etc.

This brings to mind a quote from the Game of Thrones series. It was stated by The Spider in one of his meetings with Tyrion Lannister that “Power resides where Men believe it resides”. This is a truism that still exists to this day. One wonders if it applies the same to VALUE. Barring the greed, cash grabs of day traders and weak hands, HODLERS find a ton of value in the crypto space. Governments around the world recognize it and are in research, coordination with relevant agencies. As well as, hundreds of millions of investors who subscribe to it. They can’t all be wrong can they?

So, are all of us being played as greater fools? Possibly. Why? Well to the traditional investors the crypto space is a threat. A threat to their banking investments, a threat to their art holdings, a threat to their businesses. Nothing would be sweeter if the space fails. Values increase, threat neutralized, business as usual. On the other hand, its success will mean traditional businesses gets replaced and that is nuff said.