Speculative bubbles

Greater fool theory

Sir, – David McWilliams explains the trade in Bitcoin as being based on the greater fool theory – the belief or hope that you can gain by investing in a baseless asset through selling onto the next, equally clueless, buyer (“Bitcoin’s real value is based on the greater fool theory”, News Review, March 9th).

As the value of this putative asset has surged by over 100 per cent in the last year, can we say that human folly has too?

I’m asking because I’m worried about the current applicability of my usual investment guideline – that no one ever went broke by underestimating the intelligence of the human race. – Yours, etc,

BRIAN O’BRIEN,

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Kinsale,

Co Cork.