Every time I read another tulip buble compare against bitcoin, I get more and more angry about how people can be so stupid about comparing things. Tulip is a flower, it can die-literally- throughout time, you can produce as much as tulip you want. Bitcoin can not die, it can stay in the wallet forever and its supply is limited. You can transfer bitcoin from europe to japan instantly however you have to send tulip with ship in 1 year (at that time in holland) with ship to japan.
This is really ridiculuos for me to explain the differences between tulip and bitcoin. Bitcoin is the future. Tulip never claimed that it is the future. It was just a luxury that ended. That's all.
Topic: Tulip Bubble & Bitcoin - page 2. (Read 1002 times)
The tulip mania is one of my favourite silly arguments against Bitcoin as it utterly ignores that you can't meaningfully compare markets of commodities that are inherently different.
Both Bitcoin and tulips saw an unprecedented price appreciation but that's where the similarities end. The only reason Bitcoin gets compared to the Dutch tulip bubble is because it's funnier and gets better headlines than comparing it to the south sea or the dot-com bubble. Both of which would arguable be better (if still bad) comparisons.
Luckily, as years move on and the nature of Bitcoin is starting to dawn on people, the tulip comparisons are getting less and less.
Both Bitcoin and tulips saw an unprecedented price appreciation but that's where the similarities end. The only reason Bitcoin gets compared to the Dutch tulip bubble is because it's funnier and gets better headlines than comparing it to the south sea or the dot-com bubble. Both of which would arguable be better (if still bad) comparisons.
Luckily, as years move on and the nature of Bitcoin is starting to dawn on people, the tulip comparisons are getting less and less.
It all depends on whether bitcoin actually gets used in the real world. If it does, then it is very cheap at the moment. If people find it unusable, then it's as unusable as a rare tulip and the price will fall.
BTW - the earliest and best book on financial manias was Charles MacKay's classic Extraordinary Popular Delusions and the Madness of Crowds.
You can read it free at the gutenberg library, and I recommend every investor to take some time to read about all the financial manias and scams that have taken place over the centuries:
http://www.gutenberg.org/files/24518/24518-h/24518-h.htm
BTW - the earliest and best book on financial manias was Charles MacKay's classic Extraordinary Popular Delusions and the Madness of Crowds.
You can read it free at the gutenberg library, and I recommend every investor to take some time to read about all the financial manias and scams that have taken place over the centuries:
http://www.gutenberg.org/files/24518/24518-h/24518-h.htm
This is very, very accurate.
In the long term, if bitcoin gets widely adopted(which i think will be the case, easily), then $4000+ per coin would be considered to be extremely cheap. However in the short term, bitcoin has achieved 1000% growths yet in does not have an equal amount of growth in users or adopters.
This is the primary reason why i think that it is in a bubble. Not to the extend of the tulip mania, but definitely a very sizable bubble. Whether or not it pops this year is entirely up to debate, i would say yes.
It all depends on whether bitcoin actually gets used in the real world. If it does, then it is very cheap at the moment. If people find it unusable, then it's as unusable as a rare tulip and the price will fall.
BTW - the earliest and best book on financial manias was Charles MacKay's classic Extraordinary Popular Delusions and the Madness of Crowds.
You can read it free at the gutenberg library, and I recommend every investor to take some time to read about all the financial manias and scams that have taken place over the centuries:
http://www.gutenberg.org/files/24518/24518-h/24518-h.htm
BTW - the earliest and best book on financial manias was Charles MacKay's classic Extraordinary Popular Delusions and the Madness of Crowds.
You can read it free at the gutenberg library, and I recommend every investor to take some time to read about all the financial manias and scams that have taken place over the centuries:
http://www.gutenberg.org/files/24518/24518-h/24518-h.htm
the difference is very simple actually:
nothing about bitcoin's supply has changed so far. but the demand for bitcoin has increased substantially. this is clearly noticeable by the increase in volume, how packed the orderbooks are and the fact that awareness about bitcoin has grown a lot. not to mention all the increase in merchant adoption.
this simply means a big real rise not a fake bubble.
also, rises like this are not at all strange or unheard of. there are a lot of things in the world, specially stocks market, that had the same rises. big and fast. it doesn't have to be a "tulip bubble" just because it went up fast!
nothing about bitcoin's supply has changed so far. but the demand for bitcoin has increased substantially. this is clearly noticeable by the increase in volume, how packed the orderbooks are and the fact that awareness about bitcoin has grown a lot. not to mention all the increase in merchant adoption.
this simply means a big real rise not a fake bubble.
also, rises like this are not at all strange or unheard of. there are a lot of things in the world, specially stocks market, that had the same rises. big and fast. it doesn't have to be a "tulip bubble" just because it went up fast!
I only somewhat agree with you.
It is true that bitcoin's supply has stayed relatively the same, and the supply can't be brought up just by someone printing more bitcoins because that's just not possible. It is also true that the rise of bitcoin is probably a lot less crazy than the rise of tulips back when the bubble happened, but bitcoin is still a bubble.
Every bubble is going to crash, sooner or later. It's just that the magnitude of the bubble isn't as great as the tulip mania.
the difference is very simple actually:
nothing about bitcoin's supply has changed so far. but the demand for bitcoin has increased substantially. this is clearly noticeable by the increase in volume, how packed the orderbooks are and the fact that awareness about bitcoin has grown a lot. not to mention all the increase in merchant adoption.
this simply means a big real rise not a fake bubble.
also, rises like this are not at all strange or unheard of. there are a lot of things in the world, specially stocks market, that had the same rises. big and fast. it doesn't have to be a "tulip bubble" just because it went up fast!
nothing about bitcoin's supply has changed so far. but the demand for bitcoin has increased substantially. this is clearly noticeable by the increase in volume, how packed the orderbooks are and the fact that awareness about bitcoin has grown a lot. not to mention all the increase in merchant adoption.
this simply means a big real rise not a fake bubble.
also, rises like this are not at all strange or unheard of. there are a lot of things in the world, specially stocks market, that had the same rises. big and fast. it doesn't have to be a "tulip bubble" just because it went up fast!
I have been reading so many posts comparing the past Tulip Bulb Bubble and the possibility that Bitcoin can be suffering the same fate. So what was this tulip bulb mania all about and how come they are using this is a warning to all Bitcoin enthusiasts and investors? Let's find out...
Of course, there are many of us here who can easily defend Bitcoin against the insinuation that it can just be another tulip bulb mania and can soon collapsed leaving many people holding empty bags. Tell me why you think Bitcoin could never be suffering the same fate like that tulip bulbs above...
Quote
So, what is the story with the tulip mania? Well, as some may be aware, the tulip is a national symbol of the Netherlands. The country is affectionately known by some as “the flower shop of the world.” If you’ve ever been to the Netherlands, you’ve probably seen some or visited some of the beautifully cultivated fields of colorful tulips lining the landscape of the Dutch countryside.
How much would you pay for a tulip? In 17th century Holland, it may have cost you your entire home, and you probably still would have paid up.
There have been a lot of economic bubbles and subsequent crashes over the years such as, the dot com bubble, the stock-market bubble, the real-estate bubble, but one you may have never heard of is the Tulip Bulb Market Bubble of 17th century Netherlands.
As any commodities trader will tell you, futures and options trading involves substantial risk of loss and is not suitable for everyone. Tulip mania is a perfect example of a cautionary tale of price speculation in what was one of the first economic bubbles and crashes before futures exchanges were even an organized market.
Source here.
How much would you pay for a tulip? In 17th century Holland, it may have cost you your entire home, and you probably still would have paid up.
There have been a lot of economic bubbles and subsequent crashes over the years such as, the dot com bubble, the stock-market bubble, the real-estate bubble, but one you may have never heard of is the Tulip Bulb Market Bubble of 17th century Netherlands.
As any commodities trader will tell you, futures and options trading involves substantial risk of loss and is not suitable for everyone. Tulip mania is a perfect example of a cautionary tale of price speculation in what was one of the first economic bubbles and crashes before futures exchanges were even an organized market.
Source here.
Of course, there are many of us here who can easily defend Bitcoin against the insinuation that it can just be another tulip bulb mania and can soon collapsed leaving many people holding empty bags. Tell me why you think Bitcoin could never be suffering the same fate like that tulip bulbs above...
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