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> People are not investing hoping for the project to be developed - they're investing because they know others will as well, which will drive the prices up. I
by Cakez0r 9y ago
> People are not investing hoping for the project to be developed - they're investing because they know others will as well, which will drive the prices up.
I found out recently that this is called the Greater Fool Theory - https://en.wikipedia.org/wiki/Greater_fool_theory https://en.wikipedia.org/wiki/Greater_fool_theory
- beepboopbeep 9y agoBingo.
- mtgx 9y agoReminds me of the time Facebook's valuation was growing by +$5 billion every 2 weeks, and Techcrunch was writing an article about it every time, further passing the hot patato along to late investors, while making the initial investors richer and richer.
- Confiks 9y agoOr, perhaps with a better name, a Keynesian beauty contest: https://en.wikipedia.org/wiki/Keynesian_beauty_contest#Overview https://en.wikipedia.org/wiki/Keynesian_beauty_contest#Overv...