There is something called the Greater Fool Theory. It really is a theory that has been tested in investing. The theory states that you will buy something at an inflated price because you think there is a greater fool who will pay even more. An example often given is the Dutch Tulip Craze that collapsed in February of 1637.
Looking at what is happening to the near vertical rise in bitcoins suggest the Greater Fool Theory is operating. The collapse may have started. when it does it does, the collapse is usually swift. Somebody is going to get hurt.
I do not participate in this bitcoin craze.
https://en.wikipedia.org/wiki/Tulip_mania
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