Why Bitcoin is often compared to Tulip Mania ?

[ayurvedicurea]

Bitcoin is a very innovative tech, yet some top level economists still think it's similar to Tulip Mania. What's wrong?

[BTCforJoe]

Because they are privy to believe what mainstream media says. We've heard this before in many other aspects of economy. During the economic downfall of the mid-2000's, President Bush called this the beginning of the end of the world. Remember when JP Morgan Chase needed a bailout?

Most of the financial "analysts" that are naysaying cryptocurrency have no idea about the technology behind it. Bitcoin isn't valuable solely because it's this awesome decentralized currency that allows you to send millions of dollars across the world in an instant... It's valuable because of the blockchain and the transparent nature of the public ledger and how secure it is.

Now, specifically regarding Tulip Mania... What the hell are you going to do with a tulip? What function does it serve in the long term? Now compare that to the operative upside to Bitcoin, which actually serves a purpose. Bitcoin's success doesn't rely on new investors coming into the market. It is (near) sustainable as its own currency, and whether new investors are introduced to Bitcoin or not, it will still function according to its original purpose: a peer-to-peer decentralized currency with some amazing technology.

Don't believe the mainstream hype and what you read on the news. They simply don't understand the true value of Bitcoin, which has very little do with the financial gains/losses of it.

[kareninsf]

am I the only one that had too google "tulip mania"? :p

[Yaunfitda]

Bitcoin is a very innovative tech, yet some top level economists still think it's similar to Tulip Mania. What's wrong?

Because the tulip mania was the first ever bubble in the history. And it became the benchmark for everything the economist think of a rapid increase in price followed by a crash downward trend. The uptrend is driven by speculation and irrational behavior of the market. Just like what happen to dotcom bubble back in the last 90's to early 00's.

But you have to think that there are some serious flaws in the argument. Bitcoin has limited supply as compare to the Tulip mania back then, when everyone can literally have harvest their own tulip in their backyard. That's how the bubble burst because the supply is unlimited as compare to bitcoin which has only 21 millions coins.

[coinycoiny]

But you have to think that there are some serious flaws in the argument. Bitcoin has limited supply as compare to the Tulip mania back then, when everyone can literally have harvest their own tulip in their backyard. That's how the bubble burst because the supply is unlimited as compare to bitcoin which has only 21 millions coins.

All things being equal, there is no reason why one virtual currency should be worth more than another.

Tulip mania and bitcoin mania are both caused by the delusions of some folk. It's entertaining to watch from the sides but don't gamble on it, its trend is definitely down.

[BTCforJoe]

All things being equal, there is no reason why one virtual currency should be worth more than another.

Tulip mania and bitcoin mania are both caused by the delusions of some folk. It's entertaining to watch from the sides but don't gamble on it, its trend is definitely down.

First of all, please don't give financial advice. I know you're just stating your opinion, but when you "tell" people what to (or not to) do, it's a form of advice that contributes to the very delusion that you referenced in your reply. I, personally, don't consider this downtrend a "gamble"; I've taken the opportunity to buy the dip at a firesale when Bitcoin was in the $6k's a few days ago.

Just please refrain from giving financial advice again in the future. Sorry to pick on you, but I figure one person at a time, and it could help stop the false hysteria that's being associated with Bitcoin. Cheers!

[geoffrom]

Tulip mania was the first bublle known in the world : a gig (or enourmous) increase  at the bigginning like bitcoin !!!
But bitcoin and crypto are different : they have a green future !!! they are the future of currency !!!

[jlanzago]

Because most people do not understand what it is all about and how revolutionary the use of blockchain is. Bitcoin is a pioneer, revolutionary concept in my opinion.