Tulip mania and Bitcoin

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Our dinner today  was an educative event, kids were teaching parents and grandparents about bitcoin, an interesting phenomena of the internet era. Things went pretty bad for us, older ones, it almost looked like we were complete idiots not understanding basic new concepts of virtual world. I said almost, for then I’ve remembered tulip mania.Some concepts were known already far ago, it would be shame to forget them, just in case…….which of course does not mean I do not believe in bitcoin…or tulips!

At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled craftsman. It is generally considered the first recorded speculative bubble (or economic bubble),[3] although some researchers have noted that theKipper- und Wipperzeit episode in 1619–22, a Europe-wide chain of debasement of the metal content of coins to fund warfare, featured mania-like similarities to a bubble.[4] The term “tulip mania” is now often used metaphorically to refer to any large economic bubble (when asset prices deviate from intrinsic values).[5]

A tulip, known as “the Viceroy”, displayed in a 1637 Dutch catalog. Its bulb cost between 3,000 and 4,200 guilders (florins) depending on size. A skilled craftsman at the time earned about 300 guilders a year.[1] from:http://en.wikipedia.org/wiki/Tulip_mania

 

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13 thoughts on “Tulip mania and Bitcoin

  1. I like your comparison. It is good for people to remember that there have been previous ‘bitcoin’ type episodes in our human history. Isn’t it intriguing what we find to value? I must admit I understand tulips more than bitcoin.

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  2. I don’t know if you remember the California Raisin dolls of TV fame, but the sale of the dolls and related merchandise quickly outstripped the value of sales of actual California raisins.

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      1. I think sales of the dolls dropped after the California raisin industry pulled the TV ads. The TV ads had a bunch of animated raisins singing “Heard it on the Grapevine” by Marvin Gaye and dancing.

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