Don’t Be The Greater Fool

Bitcoin ETFs were just approved by the SEC, and the price of Bitcoin has been rising since Oct'23 in anticipation. Advocates of Bitcoin claim that this is proof of the demand from the investing public for access to Bitcoin. They say this is the future of investing.

Unfortunately, this trade is known as The Greater Fool Theory. The idea is that you can get-rich-quick as long as there is a fool that is greater than you, willing to pay you a higher price than what you paid. This is not the path to financial independence. This is effectively gambling.

We have already seen this ends with NFTs. Check out my blog post on NFTs as an investment here.

Don't allow the madness of crowds to sway your from your plan.