Tulip Mania and Why It Has Nothing To Do With Bitcoin

Written by: BigChubbyCat (8BTC). Translated by: James Choi (8BTC). Edited by: Elizabeth T. Ploshay (Bitcoin Magazine). 1. Tulip. In 1635, the price of a certain kind of tulip reached 1615 Florins. At the same time, the prices of four bulls and 1,000 pounds of cheese were only 480 Florins and 120 Florins respectively. The price of a tulip, however, kept soaring to a level the next year that one tulip of a rare species was sold at 4600 Florins. Additionally, the specific buyer also gave the seller a brand new carriage, two grey horses, and a whole set of harnesses. Eventually someone woke....

Hang around Imgur and reddit long enough and you will find photos of Dutch tulip fields popping up with clock-like regularity. The country has long been famed for its flower industry, and the expansive fields of colourful flowers do create a mesmerizing spectacle. When discussed in the same breath as bitcoin, however, Dutch tulips are an insult. 'Tulip mania', a phenomenon in the early 17th Century where tulips traded at extraordinarily high prices and then spectacularly crashed in value, is pointed to as a historical analogue of the current controversy surrounding bitcoin. In December,....

There's no comparing the current bull run to the 17th century tulip bubble, Dan Tapeiro argues. Bitcoin (BTC) and cryptocurrencies look nothing like the tulip mania of the 17th century, even after their rapid gains, one macro investor says.In a tweet on Monday, Dan Tapeiro, co-founder of 10T Holdings, argued that in terms of price relative to average income, Bitcoin and Ether (ETH) still have a long way to go before challenging tulips.Bitcoin vs. tulips: There's no comparisonTulip mania was a brief but intense speculative bubble in what is now the Netherlands that lasted only a matter of....

NYT likens the NFT bubble to the plague induced “tulip mania” of the 1600s, Polkamon NFTs generate more than $1 million in gas fees, and a man fails to sell 50% of a house as an NFT Having just flogged an NFT column for half a million dollars, the New York Times is now wondering if perhaps the whole scene is in a bit of a bubble?In a March 30 article, Art’s NFT Question: Next Frontier in Trading, or a New Form of Tulip? author Scott Reyburn questioned the sustainability of the current NFT bubble in prices and drew comparisons with the Dutch “tulip mania” of the 1630s. Tulip mania for....

The Dutch central bank, De Nederlandsche Bank (DNB), has issued a warning on digital currencies such as bitcoin, saying that they "are unlikely to become a viable alternative for traditional currency in the foreseeable future". Recognising that digital currencies fall outside the bank's scope for regulation, the statement on the DNB website warns: "There is also no security in respect of funds received, ie no guarantee that balances will be returned following bankruptcy, and outstanding payments will be executed. No-one monitors whether virtual currency institutions have sound and....