Why Do People Invest in Assets They KNOW Are Overpriced (or Worse)?
DentaCoin, for example, is a cryptocurrency for DENTISTS… arguably the worst idea in the history of finance, yet people still invested in it. Why? Well, while some were simply ignorant/clueless, others knew this altcoin is utterly useless but bought in regardless.
They did it because they believe in the so-called greater fool theory (this is a one minute animation about it) or, to put it differently, they knew they were being fools when investing but were sure they’d eventually be able to sell to greater fools for more!
Does something like this work?
Let’s just say it works until it doesn’t :)
As those of you who end up watching the animation will find out, it’s all fun and games until someone is left holding the bag. If it’s you that ends up standing after everyone else found a seat in a game of musical chairs… good luck with that!
