Those who all along declared crypto nothing more than a new tulip bubble
believe the market has vindicated them.
But so have the voices comparing cryptocurrency to a Ponzi scheme or to the 17th century "tulip bubble
"It's not some tulip bubble
but a technology breakthrough, cryptocurrencies or tokens derive values from their use cases into their underlying technology.
Not since the Tulip Bubble
of 1637 had prices of a single commodity (Bitcoin) gone up so much so quickly.
But not always: whereas the Wall Street boom of the 1920s ended in the Great Depression, the tulip bubble
of the 1630s seems to have had little impact on the Netherlands' medium-term growth path.
You may have read about the similarity between the bitcoin price rises and the "tulip bubble
" in Holland in the early 17th century, where the price of tulips rocketed and then collapsed suddenly.
"On the other hand, as we've seen often in history - whether it's the canal mania of the 18th century or the first internet boom - this could just be a tulip bubble
, and soon to burst."
That's an important element in our story." Tulip Fever covers the years of the"tulip bubble
," during which the price of tulip bulbs skyrocketed almost daily " until the market collapsed in 1637.
And before that, there was the Dutch tulip bubble
of the 1630s.
They should also pay more attention to the new trends and rules of the post-credit crisis world as well a the long history of asset price bubbles going back to the Dutch Tulip Bubble
in the 17th century.
[...] If we speak about psychological factor[s], it's interesting that economic bubbles have been a constant reality in human history--going back to the Dutch tulip bubble
in the 18th century.
Goldgar deftly dispels many of the long-held myths about the devastating blow the crash made on the overall health of the Dutch economy and even notes that the commentators and playwrights greatly exaggerated the number of individual hardships and bankruptcies associated with the popping of the tulip bubble
. That said, she argues that the exaggerations served a purpose to bring to public attention the very real dangers inherent in the rise and fall of the subjects of the capricious goddess Flora.