Greater Fools Theory: Digital Currency will become viable only if it is widely used for transactions, not just as an investment device .
Hello Fellow Redditers and Cryptocurrency investors,
Digital currency is tumultuously fermenting. Many people on this site are discussing what moves to make with their ETH, BTC, etc. It is during times like these that I like to remind people of the Greater Fools Theory. I fear this is causing the current direction of Cryptocurrencies, and I urge people to get back to focus on what cryptocurrency was created for... PAYING FOR THINGS. Only then will it have true intrinsic value.
THE GREATER FOOLS THEORY is a Financial theory that states, A price can be justified by a rational buyer under the belief that another party is willing to pay an even higher price. Simply put it means a reasonable investor could buy something that has no value only because s/he thinks someone else will buy it later for more. This almost always leads to a bubble and a crash.
If we all want cryptocurrency to succeed, we must ensure it builds intrinsic value. We must demand that retailers accept it as payment, we must USE it, not just INVEST in it. Next time you buy something from an online retailer, just ask them, "How can I pay with *Ether, BTC, LTC, etc?".
TL;DR People buy cyrptocurrency only because they think they can sell it later at a higher price. It won't be worth anything until people start using it.
Disclaimer: This is meant as a partial point of view, not a law. I ultimately BELIEVE in the utility of digital currency and am invested in it. This was more of a cry to the community to use it, not just invest in it.
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