Tulip mania started in 1634 in earnest HERE! The bottom line is that people were placing inordinate value on tulips. It ended up ruining many investors – wiping them out completely. Today, we have crypto currency following a similar pattern. So, what’s the difference? Tulips you could hold, smell, look at, decorate your home with and possibly some other things. Crypto currency, you cannot hold, see, or even touch. It is non-tangible, and can be eliminated by a single key stroke.

Tulips are perishable, where crypto currency has the potential of an indefinite lifespan. Tulips are bulky and cannot be easily transported. Tulips are subject to being damaged. Crypto currency only takes up cyber space, and may be sent around the world in seconds. Crypto currency also is not subject to damage. Tulips are harder to steal where crypto currency can be hacked and stolen or confiscated easily. Tulips certainly could be regulated, but that is not likely. On the other hand, crypto currency has been regulated, and may become more regulated.

Tulips cannot effectively be utilized as money where crypto currency can be and is. Money has certain criteria including: a store of value (crypto cannot do this), medium of exchange (crypto yes), divisible (crypto yes), hard to come by and limited in supply (not really), durable (not even tangible), easily recognized (maybe, although with over 1500 of them, there will have to be a shake out), easily transportable (Yes) reliable and instills confidence (so,so)

The bottom line is crypto is better than tulips, but not great!

Pensiamento Peligroso