The ‘Greater Fool Theory’ drives 99.9% of the cryptocurrency market, according to Dogecoin’s co-creator.

Billy Markus, the developer of Dogecoin (DOGE), stated on Monday that the cryptocurrency market is mostly driven by investors’ capacity to sell their holdings to larger fools, which is an underlying premise of the greater fool hypothesis.

What Happened:

Markus made his remarks in response to a tweet that decried investors passing over technologically solid ventures in favour of memes.

Why It Matters: 

Investors that believe in the greater fool thesis disregard valuations, earnings, and data in general, which are referred to as fundamentals in finance.

 

The disadvantage of such a plan is that they may end up holding the bag when there are no more larger fools. Markus seems to be aware of the Twitter trend.

DOGECOIN has risen 6,815.92 percent this year, boosted by the so-called DOGE army, which consists of ardent retail investors and high-profile proponents such as Tesla Inc (NASDAQ:TSLA) CEO Elon Musk.

On social media, retail investors frequently use the words like diamond hands and paper hands. While diamond hands refer to those who stay on to their investments as prices decline, paper hands relate to those who sell too soon. 

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