what is key differences between Bitcoin and tulip bubble

[udayantha11]

As per my understanding. there are major differences between bitcoin tech and tulip mania. Some people still asking bitcoin is the same as the tulip bumble. Tulip is a non-tech bubble and BTC is a tech bubble.

My points are

A tulip is a just flower and has no long useful life for it.

Tulip flowers do not have a use case

Tulip flower investment does not use any security standards


As per the white paper of the BTC , BTC is for peer-to-peer exchanging money with any border limits, and it's a real use case.

BTC has had a long useful life, from 2009 to now. And its adoption especially in the tech sector so we can predict this has to be in another 100 years. There is another valid point that the last BTC going mined in 2140 or near year so for that period BTC should survive.

BTC is secured with Blockchain technology and millions of computers are now connected to the newtork. Hashing rate is very high so its almost impossible to break the security of the BTC network.


At last, i would say, Tulip is a just a flower without long life. Everyone can not get it. BTC is related with tech and everyone can use it. No discrimination, no boarder , no third party. So BTC will be king of the financial market in near future on the internet.

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[Despairo]

Actually Bitcoin and Tulip are completely different thing, it doesn't make sense to compare both of them. Don't compare an apple with a shoes, you need to compare an apple with an apple too. Tulip was expensive because not everyone know Tulip and it's been used for speculation, while Bitcoin, everyone almost know about it, but some people still not want to try to buy Bitcoin.

Bitcoin wouldn't crash and become worthless, if anyone ever predict Bitcoin would worth $0 in the future, it's a people who doesn't anything about Bitcoin.

[Bitstar_coin]

If you know so much reason why btc is not a bubble and never will be why comparing it with some flower? This is the most ridiculous btc comparison I have seen. Perhaps all the tech giants and big org that have adopted btc and continue to do so love to be part of the big bubble  
It was a good read and very educative.

[BitcoinBarrel]

Tulip mania was mainly a speculative bubble.

Bitcoin, on the other head, has real-world practical use and is inflation-proof by design. There is a speculative aspect to crypto that follows many other market cycles. Take a look at Gold's all-time charts for instance and compare to Bitcoin. Looks pretty similar.

Bitcoin will continue to rise and fall but ultimately will rise in the long-term.

[mindrust]

The main difference is; Tulips are inflationary. You can plant and create as many tulips as you like. Bitcoin on the other hand is deflationary. Bitcoin’s supply is limited to 21 million units and every day some of those units get lost. There are probably not more than 16 million bitcoins available nowadays. You can’t plant bitcoin on the ground like you do with tulips.

Tulips look cool though. I can’t ignore their beauty.

[pooya87]

Some people still asking bitcoin is the same as the tulip bumble.

I don't know where you've been hanging out but I haven't seen anybody ask this in years!

Tulip is a non-tech bubble and BTC is a tech bubble.

There is no bubble in bitcoin.

we can predict this has to be in another 100 years.

No we can't. The way technology is developing the gaps between massive innovations that revolutionize the world is decreasing so we can't predict what bitcoin is going to be like in 100 years from now.
We can only predict the short term. For example we know that for the coming decade or two bitcoin will dominate as the only decentralized currency.

There is another valid point that the last BTC going mined in 2140 or near year so for that period BTC should survive.

Again you can't make that prediction and your whole reasoning is wrong. Bitcoin doesn't survive based on its block reward.

[OgNasty]

The tulip bubble is hard to understand. There were so many reasons why it happened, it was a perfect storm. If you read about it in depth, you learn many interesting things, like what the tulips were being used for and why they were important at that point in history. You could make the case that government spending creates the effect storm for Bitcoin, but unlike Tulips, there is no ability to increase production and it’s likely demand will grow instead of shrink.

[davis196]

Don't compare Bitcoin to tulips. This is dumb. You have to compare that market forces of supply and demand, which created the tulip mania centuries ago and which created several Bitcoin price bubbles not long ago.
The technology and the utility of both Bitcoin and tulips doesn't matter. What matters is the greed, that creates short term market deviations.
The FOMO effect, which creates the price bubble. That urgent need to buy something which costs 100 USD, because you know that it will cost 1000 USD tomorrow. You know the saying "Something costs as much as someone is willing to pay for it."

[Majestic-milf]

The tulip bubble is a metaphor used to describe a market situation in which prices go up dramatically. And personally I'd say it's quite an unhealthy comparison if used against Bitcoin as if you observed during it's reign centuries ago, it's value climbed to an ath and crashed suddenly. Which is not the case of Bitcoin.
.
 Bitcoin has intrinsic values and has been referred to as a store of value whereas the tulip mania has known and it's acquisition was as a result of greed of then investors which ended in foolishness, because when prices crashed, so many lost.

[Tytanowy Janusz]

Great thread. I have idea for your next one. We need comparison between tomatoes and bitcoin because it may be confusing for some people.

I think that this new thread should explain everyone that bitcoin is an innovative monetary system while tomato is only a red fruit. I'll think about other necessary comparisons like btc vs potato, or btc vs rain. People should know the difference.

[White pawn]

Who exactly are those people asking such questions?
Why would people lay comparisons between the two? I think it’s ridiculous. Anyways, I thank you for laying out the key differences from something that’s totally different.

[Wexnident]

Is Op relating the Bitcoin market to the tulipmania event like centuries ago? The people were rather undeveloped back then about a lot of technical stuff and you're comparing a flower to a currency, not to mention Tulips can be grown, hence an ever-growing supply, unlike Bitcoin with its limited supply. The people then lacked a lot of information but now? The internet is a sea of information.

So BTC will be king of the financial market in near future on the internet.

Technology is improving at a rapid rate, it wouldn't be odd for it to be replaced a few decades later on imo. It's the king now, but who can say the same a decade later? I guess most just ignore the possibility since we're like 2 decades in and none has gotten near its place, but I still wouldn't consider it an impossibility.

[franky1]

a bubble is not about utility, its about price going too high to be sustainable

every ATH is a bubble. ATH prices are not the sustainable value line they are the short term events of hyped up speculation that do correct down

here is the thing. many people think tulips are a example of market failure where tulips died after the failure

but guess what even today hundreds of years on you can still buy tulips.

the things you need to realise is tulips were not used as common currency for a nation they were an asset currency, driven by the elites wanting to show off their wealth by having gardens full of what they claimed were unique exotic flowers

it was not a plain tulip breed where thousands of bulbs were selling for near house prices... it was actually only a single bulb that sold for a house price

the mania was not that tulips were being used to pay rent and buy groceries.. it was that elite/rich/politicians were going through a frenzy outbidding each other to try to compete for higher social/economic status  it was where if you can have a garden in the political/rich guy streets of a notable town you are displaying your nobility

it was never about a failed nations FIAT. it was about a reproducable plant that starts off rare and becomes common.

tulips were never meant to be a value guage of "money" or utilised as money. they were just a display of wealth by decorating their lawns with the "first" rare hybrids they could get their hands on which they were all trying to create the next best beautiful plant to display in their garden

tulip mania is more on par with ICO. creating new hybrid things to display as something unique trying to get as much money for the initial premine before the widespread production begins of that hybrid

[hatshepsut93]

In some way, there is no difference between a tulip and Bitcoin. Both have their prices formed purely by supply and demand on an open market. Tulips had one huge bubble and they didn't recover from the crash. Bitcoin has many bubbles and it recovers from them. But there's no guarantee that Bitcoin will continue recovering, it could stabilize or even decline. Tulips utility was overestimated, same can happen to Bitcoin or any other asset.

We all know that Bitcoin is a peer-to-peer currency, censorship-resistant payment method and so on, but how much such solution should cost? 100 billions? 1 trillion? 10 trillion? No one can make a good argument here, it's pure guess, pure speculation.

[mk4]

Main difference is that the tulip bubble immediately went straight down and totally died, whereas bitcoin already had multiple bubbles and is far from being "dead" — both as a protocol and as an asset.

[SquirrelJulietGarden]

Tulip bulbs are inflationary but Bitcoin is not inflationary. It is deflationary.

Total supply of tulip bulbs increase with time but total supply of Bitcoin is capped at 21M. The total supply of Bitcoin even decreases with time when more people lost their Bitcoin.

With basic differences like above, Bitcoin is better than tulip bulb and I don't imagine about Bitcoin bubble or any bubble that is similar to tulip bubble.

[lionheart78]

Who exactly are those people asking such questions?
Why would people lay comparisons between the two? I think it’s ridiculous. Anyways, I thank you for laying out the key differences from something that’s totally different.

People especially those who are anti-Bitcoin always compare Tulip bubble to Bitcoin price surge due to the common factor and that is market price speculation.  No one can deny that Bitcoin market is still driven by speculation even though bitcoin has already established its real life use case.  The same thing with tulip bubble which on that time the market is also driven by speculation.  The difference between these two speculation is already given by the earlier replies.

[Z-tight]

Tulip is a non-tech bubble and BTC is a tech bubble.

How is bitcoin a tech bubble, because it is in a winter period? Bitcoin can fall in price due to volatility that is most times caused by weak hands, but that doesn't make it a bubble, it is still widely used and growing fast, a coin that is already a legal tender in two countries, with more to come in the future is surely not a bubble.

There is another valid point that the last BTC going mined in 2140 or near year so for that period BTC should survive.

BTC will survive even after after that period, block rewards will stop for miners because there is no more bitcoin to be 'mined', but they will continue receiving transaction fees as reward, and it will be more valuable then than what it is now.

So BTC will be king of the financial market in near future on the internet.

You managed to get this part slightly correctly, the near future is long and one can't predict what will happen, but bitcoin will surely be right up there!

[darkangel11]

Tulip bubble was a fast up and down. Bitcoin has been here for much longer.
Tulip bubble had no utility background. People were investing to sell higher. With bitcoin is different because many people invest to hold and hedge against inflation and centralized markets.
Tulip value was pumped just because many new people were coming in. With bitcoin is more miners, more businesses, more software, more holders. It's not just one layer but many.


If you really want to compare a dotcom bubble is a much better example than tulips.

[Baofeng]

I think they just reference a comparison between bitcoin and the tulip bubble in the 1700's if I'm not mistaken. Because that time, tulip is one of the most sought after flowers and it become a commodity, the price skyrocketed that time. However, when the market becomes saturated, i.e. when everyone is planting tulip and selling them, then it collapses.

However, we can't say that for bitcoin, yes we have highs and lows, bulls and bears market, but the thing is that bitcoin always recover so there is no bubble as per definition of it. And so the comparison with Tulip mania or bubble is very flaw in the beginning.