The greater fool theory frequently explains why otherwise rational economic actors make seemingly irrational choices. We can see countless examples of the greater fool theory if we analyze economic history case studies. The many crypto bubbles we've witnessed can be considered manifestations of the greater fool theory, with the same behavior being exhibited at different points in history when it comes to anything from tech stocks or real estate to... well, tulips :) Is the greater fool theory "true" or, in other words, does it work? Well, it ultimately all depends on how you define the words "true" and "work" because if you're only in it short-term gains, then sure: let's just say the greater fool theory works until it doesn't. This video explains what the concept is all about (the "definition" or if you will meaning of the greater fool theory) and should help you figure out if (or when) you find yourself in a situation one could consider in the realm of this theory. What you do with this information is entirely up to you. At the end of the day, the greater fool theory is nothing more than an example of something that makes humans... well, human. We're anything but perfect creatures and the sooner you realize this, the better your personal finance strategy will become! To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message. Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to [email protected], any and all support is greatly appreciated! Oh and I've also started playing around with Patreon, my link is: https://www.patreon.com/oneminuteeconomics Interested in reading a good book? My first book, Wealth Management 2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below: Amazon - https://www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK Barnes & Noble - http://www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942 iBooks (Apple) - https://itun.es/us/wYSveb.l Kobo - https://store.kobobooks.com/en-us/ebook/wealth-management-2-0 My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below. Amazon - https://www.amazon.com/Age-Anomaly-Spotting-Financial-Uncertainty-ebook/dp/B078SYL5YS Barnes & Noble - https://www.barnesandnoble.com/w/the-age-of-anomaly-andrei-polgar/1127084693?ean=2940155383970 iBooks (Apple) - https://itunes.apple.com/us/book/age-anomaly-spotting-financial-storms-in-sea-uncertainty/id1331704265 Kobo - https://www.kobo.com/ww/en/ebook/the-age-of-anomaly-spotting-financial-storms-in-a-sea-of-uncertainty Last but not least, if you'd like to follow me on social media, use one of the links below: https://www.facebook.com/oneminuteeconomics https://twitter.com/andreipolgar https://ro.linkedin.com/in/andrei-polgar-9a11a561