There is a theory among the most popular myths about Bitcoin that the idea of a cryptocurrency is a bubble.
In this regard, Bitcoin is often compared to Tulip Mania, which is a historical period characterized by the tulip buying frenzy in the Netherlands in the third decade of the 17th century.
Long story short, the demand for beautiful tulips of a particular type grew in the Netherlands in the 1630s. The price increased, therefore the demand additionally increased due to the speculators, who started to buy up bulbs at rising prices in an attempt to take advantage.
Initially, the demand was significantly higher than the supply, which was pumping the bubble up. But then it changed, and there were more bulbs than those who wanted to buy them. The tulip bubble popped, leaving hapless flower merchants broke.
Why do people compare the story with the one of Bitcoin (BTC)?
Published at Tue, 05 Nov 2019 09:18:30 +0000
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