Tulip Mania

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Tulip Mania

History's first major asset bubble. Tulips were introduced to Europe from the Ottoman Empire in the mid-1500s and became very popular in the Netherlands. As they grew in popularity, prices for tulips rose steadily, then unsustainably, in the 1630s. Prices suddenly collapsed in February 1637. Interestingly, tulip mania resulted in the creation of a formal futures market and marked one of the first times when contracts were traded without exchanging the underlying asset.
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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.
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.