Greater Fool Theory

Shiny rocks. Tulips. Bitcoin. (Post-crash, it rhymes with s#%&coin.)

The basic idea in the Greater Fool Theory is that you’re a fool...I’m a fool...we’re all fools in the mosh pit. And we’ve all done and will continue to do stupid things. Like paying 7 grand for a tulip. One that just, um…sits there. It doesn’t divine the future. Or guarantee lifetime, um...sexual prowess if you eat it. It doesn’t even reproduce in a particularly virile manner.

It’s just a tulip. A short-term store of wealth that one fool paid 7 grand for…making the big bet that there’s another fool (even more motley foolish) who will pay 8 grand.

And in Holland...there was. One clopping wooden shoe-wearing blond paid 9 grand for a serious tulip. And then another even greater fool paid 10. And then another fool paid 11, and so on, until this most foolish of all fool tulips sold for 26 grand.

Then what?

It didn’t.

There were no more fools even greater than the ones before. So the price plummeted back to the like 4 cents it was actually, intrinsically worth and, well...that was all she wrote. Or...germinated, or whatever.