Yes, that explains the altcoin scene exceptionally well. Not!

In the end that will likely work, and yes there is a very good chance that turns out to be Bitcoin, but the level of activity you see in altcoin trading isn't consistent with other people pursuing that approach at all.

BTW, I have rarely if ever bought a coin for the purpose of flipping it. It may have happened (if I happen to see someone trying to give me money I will often allow them to do so), but I don't remember it. No doubt plenty do do that, which is exactly the gambling game you say is is 'smooth propaganda', but actually explains the observed behavior a lot better than your theory.

And as I've said before, I own more Bitcoin than alts and more fiat-based and hard assets than Bitcoin, which more or less reflects my assessment of their relative probabilities of being worth anything in the future.