CME's plan for bitcoin futures mirrors moment just before the 1637 tulip bubble

[bbc.reporter]

History tends to repeat itself, and bitcoin's crash will be no exception. The next crisis causing crash will not be the community's fault or the developers'. But the fault of same Wall Street bankers that have caused the housing bubble, the dotcom bubble and the next upcoming cryptocoin bubble.

They will take their investors' money and inflate the cryptocoin bubble so big, that the crash would cause another financial crisis. People will lose their savings and their pensions, but the bankers will be sitting pretty as usual.



CME Group announced plans for bitcoin futures contracts earlier this week, a move that UBS analyst Paul Donovan has compared to the introduction of a similar product just before the tulip bubble burst in the 1600s.

The tulip craze in the Netherlands in the 17th century saw the price of the flower skyrocket. This resulted in a crash of that market in 1637.

In 1636, cash-settled futures were introduced in the tulip market. A futures contract is one where a buyer and seller will agree a price for a commodity that will be delivered on a certain date. This previously meant that the physical product had to be delivered. But cash-settled futures contracts allow cash to be delivered upon expiration.

This method was used during the tulip bubble and a year later in 1637, the market crashed.

Read the full article https://www.cnbc.com/2017/11/02/bitcoin-futures-mirror-1637-tulip-bubble-crash-ubs.html

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[RGBKey]

People have been comparing Bitcoin to tulip mania for years, since it started. It's not the same thing, they're two completely different items. Give it up.

[bbc.reporter]

@RGBKey. I am not arguing about that. I know what bitcoin is and I know its potential. Read the article and try to analyze what is being hypothesized by the writer. I have already said that if a crash of massive proportions takes place, it will be the fault of the same bankers who have caused the financial crises in the past.

I speculate that the CME group's cryptocoin futures market might create more dangers than good.

[imstillthebest]

People have been comparing Bitcoin to tulip mania for years, since it started. It's not the same thing, they're two completely different items. Give it up.

yeah, its not new to see this kind of news. all big influencial people are keeps saying bitcoin was a bubble, tulips, ponzi or etc.. but why bitcoin still here? standing strong and keeps on moving to reach again is new all time high. more people are still believing on bitcoins and most of them are risking anything just to join this bitcoin roller coaster ride, therefore they dont really care if what will be the future holds on bitcoin.

[lobo13hf]

@RGBKey. I am not arguing about that. I know what bitcoin is and I know its potential. Read the article and try to analyze what is being hypothesized by the writer. I have already said that if a crash of massive proportions takes place, it will be the fault of the same bankers who have caused the financial crises in the past.

I speculate that the CME group's cryptocoin futures market might create more dangers than good.

As the more company that tries to give their prediction and put a lot of the money in there. I was expecting about that will give a lot of impact to the market speculation. Some times the bankers be able to manipulate the bitcoin's price will all of their money. Remember about they are having unlimited fiat money and can throw it anytime to the bitcoin market. The more money will be flying to the bitcoin market seems only the advantage if the futures trade of bitcoin. But the market direction will get a lot of influence.

[fanbeila]

Exactly.I think that we are going to witness the same crash which people in 1600s experienced in tulip crash.
Now,with CME releasing bitcoin futures which is cash settled,speculator would play easily since every thing is carried upon contract.This would lead to price manipulation.Bitcoin price may reach very high quickly and may face a sudden and huge fall leading to crash.But innocent people are very much excited that bitcoin price is inreasing due to the entry of CME and they are totally unaware of future consequences.