Most bullshitting is done for people seeking status, seeking to convince somebody of something. The key is that the goal is orthogonal to accuracy, that they're going to say whatever they need to say to get what they want regardless of whether it's true or not. There are very strong moral norms against lying; if you are known as a liar, your reputation is really quite destroyed. But if you areknown as a bullshitter, it doesn't really destroy your reputation in the same way. And I'm not 100% sure why the difference is there, but those are some speculations.

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