This is why bitcoin is crashing

[DaveWave]

A long time ago in Holland people bought flowers pretty much as they do now. By chance a farmer cultivated a tulip whose flowers were unusual, as such his flowers commanded a great premium and the farmer became rich. Other farmers saw this and bought his bulbs so they could cultivate their own. These farmers also became rich

A few intelligent farmers, rather then invest in the original bulb tried to create their own hybrids and many succeeded creating bulbs that were even better than the first. These farmers also became rich.

Within a couple of years, there were 500 or so different varieties and traders bought and sold bulbs and with all the excitement and publicity the price went up. These traders also became rich.

Some people realised that instead of leaving their money under the bed that if they bought a few bulbs and sold them a month later they could double their money. These people also became rich.

After 3 years the market was booming, strangely the original bulb was still worth more than the newer, improved varieties. Who knows why?

After 4 years everyone knew that bulbs were worth pretty much the same, you buy them to produce flowers in your garden.

TL;DR
The ones and zeros that programmers create are there to provide a service, a transaction. They are not for storage of wealth.

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[JJB]

Oh great. Another tuplipmania analogy by a newb. They're completely different as has been explained zillions of times.

[DaveWave]

Not a newb, but I haven't got any tulips

[davidpbrown]

Not a newb, but I haven't got any tulips

Saying shit doesn't make it true.

The analogy isn't new and it isn't valid.

[DaveWave]

I sense you guys are still in the denial phase

[Dogtanian]

I sense you guys are still in the denial phase

I sense you are in the newb troll phase  . Bitcoins aren't comparable to tulips because you can't send tulips around the world in seconds for little to no fee. Just because the price is low doesn't mean the denial face is operational. Give it time newb then we'll see who's right.

[DaveWave]

I sense you are in the newb troll phase  . Bitcoins aren't comparable to tulips because you can't send tulips around the world in seconds for little to no fee. Just because the price is low doesn't mean the denial face is operational. Give it time newb then we'll see who's right.

It's the internet that sends thing round the world instantly and computers that enable cheap transactions. To capitlise Bitcoin in billions is why its like tulips.

[Come-from-Beyond]

I sense you guys are still in the denial phase

They are. Leave these poor guys alone.

[Elwar]

I did a search for "tulips" in the search box on here yesterday and it crashed bitcointalk.

Yes, there are THAT many threads about tulips.


Please, OP...point out another example.  Got none? Because that's the only one in history.

[MUFC]

I sense you are in the newb troll phase  . Bitcoins aren't comparable to tulips because you can't send tulips around the world in seconds for little to no fee. Just because the price is low doesn't mean the denial face is operational. Give it time newb then we'll see who's right.

It's the internet that sends thing round the world instantly and computers that enable cheap transactions. To capitlise Bitcoin in billions is why its like tulips.

And what is it that processes those transactions? The blockchain. Do tulips have a blockchain? No. As for bitcoins being a store of wealth they store their 1btc wealth pretty good. 1btc is always worth 1btc, what others pay in fiat for it is a different matter.

[Bitcoinpro]

its was a bubble because it was tulips and that's the whole point

if it was computers they where investing in the 1600's then it wouldn't

have been a bubble,

its like investing today in the horse and cart just because of some

temporary fuel shortage, within a brief time no doubt the horse

and cart will be relegated again

[DaveWave]

Yes, there are THAT many threads about tulips.

...gosh makes you think

Please, OP...point out another example.  Got none? Because that's the only one in history.

how about this site
http://www.businesspundit.com/10-most-bizarre-economic-bubbles-in-history/


I repeat, bitcoin per se cannot have value, it is not an asset. It's data on hard drives, end off.

[DaveWave]

And what is it that processes those transactions? The blockchain. Do tulips have a blockchain? No. As for bitcoins being a store of wealth they store their 1btc wealth pretty good. 1btc is always worth 1btc, what others pay in fiat for it is a different matter.

It's computers that process the blockchain, the blockchain is a list of transactions. You could use any cryptocurrency you want, so why would you pay thousands more than a competitor. Or why use cryptocurrency at all if there was a better way?
 

[Bitcoinpro]

fiat caused the tulip crash

[DaveWave]

Oh not this shit again, last time I checked tulips didn't have an ease of sending around the world, do not die/expire, have a limit on how many produced and a produced amount with difficulty.

Granted Bitcoin is limited, but it's a cryptocoin. Just like any of the other 500 coins out there including Paycoin which I think you believe in. There is no fundamental reason why bitcoin should have any more value then any other coin other then it was first to market.

And there is no limit to the number of crypto coins that could be made, hell, we could each have our own coin, and why should it be worth any less than bitcoin? Answer, it shouldn't, they're all worthless.

At least with a bulb I can grow a flower and give it to my wife.

[Bitcoinpro]

Oh not this shit again, last time I checked tulips didn't have an ease of sending around the world, do not die/expire, have a limit on how many produced and a produced amount with difficulty.

Granted Bitcoin is limited, but it's a cryptocoin. Just like any of the other 500 coins out there including Paycoin which I think you believe in. There is no fundamental reason why bitcoin should have any more value then any other coin other then it was first to market.

And there is no limit to the number of crypto coins that could be made, hell, we could each have our own coin, and why should it be worth any less than bitcoin? Answer, it shouldn't, they're all worthless.

At least with a bulb I can grow a flower and give it to my wife.

btc and ltc are the strongest therefore exponentially worth more than alts

we don't have our own coin each because team work is far superior

[hoversensitive]

  great great

[crazy-pilot]

I'm Dutch and this is utter ridiculous analogy.

[DaveWave]

btc and ltc are the strongest therefore exponentially worth more than alts

we don't have our own coin each because team work is far superior

But alts are worth nothing

[DaveWave]

I'm Dutch and this is utter ridiculous analogy.

At the time bulb growers thought the price would keep going up. When the market went down they thought it was a blip.

The analogy is this is a bubble that has popped. Where is it ridiculous.