What is the Tulip Mania and Why People Compare Bitcoin ...

Tulip Bubble or Dot-Com Bubble?

I'm sure you already know my sentiments, but let me take a moment and lay out the reasons why.
The Dutch Tulip Bubble (or "Tulip Mania") was a period during the Golden Age when the price of Tulip bulbs skyrocketed in a speculative bubble that burst, in February of 1637. Bidders had run the price of certain tulips (arguably the most gorgeous and lovely ones) to price heights that made no sense.
Speculators were mortgaging houses to buy tulips, and some of the most expensive ones could cost the value of a real house. The Dutch economy was booming, and the citizenry enjoyed the highest financial statndard of living in the world at the time. Significant amounts of discretionary income, coupled with a devaluing of the Dutch Kronur (less and less precious metals had been used for the minting of the Kronur over the previous decades) led to the very real popular concept that the price could only go up.
Of course, after European markets started trading tulip bulbs and the excitement grew to a manic phase, the bottom fell out, and people realized that there is no comparison between the value of a flower and real assets, like houses, horses, food, etc., and the market imploded.
The Dot-Com bubble of the late 1990's was similar to Tulip Mania in some ways (bubbles always are) but significantly different in ways we need to acknowledge and examine.
Speculation is always at the core of any bubble, and Tulip Mania, the Dot Com Bubble and the Crypto Run-Up of 2017 and subsequent collapse in 2018 are no exception. As greed and excitement kick in and override the Human Brain's ability to discern smart from not, the human's tendency to stampede--in either direction, up or down--is significantly increased as the amount of money involved increases.
Capitalist hegemony has imprinted directly on our hippocampuses the concept that the goal is to die wealthy; to die poor is anathema in all segments of human society. "He who dies with the most toys wins!" is a common exclamation.
So when opportunity presents itself, Humans tend to try to take advantage of it, even when the opportunity makes no sense. The Dot Com bubble was one where big industrial financing actually created the monster by throwing huge sums of money at pretty much any idea and team that had an interesting, internet based theme.
eToys.com, Baby.com, et. al., were simply brick and mortar ideas repackaged for the internet--and mostly repackaged to sell the investment. The only difference was the ".com" on the end, and to the investment community, that was more than enough to open the money spigots.
The main difference between the Tulip Mania bubble and the Dot Com bubble is the actual technology. The Dot Com bubble was a ton of fluff, surrounding a strong core of real innovation and futuretech. The Tulip Mania bubble was, for lack of a better term, simply flowers.
So applying these historical times with today's Crypto run-up and implosion, there are obvious and undeniable similarities. The run up in Crypto has made many people instantly and effortlessly wealthy, indeed, some of them are celebrities now, simply because they threw a small amount of money at a project at the right moment and spun the wheel.
And we hear from some of these guys every day. The smaller "players" (I call them 'posers') who made some money by pure luck and now fashion themselves to be experts ("Listen to me! I made money last year and I have a youtube channel!") are all expounding on the virtues of this coin and the shitcoin propensity of that project. In most cases, they were lucky, once. Beware their advice.
The Crypto bubble and collapse is much more parallel to the Dot Com bubble and collapse because at the core of both situations lies a transformative technology and a handful of good projects/companies that emerge at the end of the chaos with strong product and ideas that the public will need, will buy and which will survive. These projects are typically underhyped, undervalued, and are considered "sleepers" at some point in the bubble. This is because instead of chasing financing or chasing popular opinion, they are quietly and methodically perfecting their technologies, their products and their consumer experiences.
These projects are few and far between, interspecked within the flotsam and jetsam of multitudes of "debris projects" that will not survive.
Who remembers MySpace? Who remembers AOL? Who remembers dialup and the AOL "coaster CD?" Who remembers Netscape, AltaVista and Webcrawler?
Amazon, Netflix, eBay, Google, Facebook and a few others were also generated in this timeframe.
Tulip Mania had no survivors, as there was no innovation involved. Simple greed, and when the music stopped, most people were on the wrong side of the chairs.
After the Dot Com bubble burst, however, was a period of quiet, thoughtful and valuable growth. Those who survived the carnage continued on to be come the current Captains of Internet Industry, and have made those who found them, researched them, and invested in them fantastically, famously wealthy.
I believe we are at the point where the bubble has burst, and the dust is settling, in the Crypto bubble. The real and innovative projects have continued their work and are busily planning for the next phase. I strongly believe the Kin Foundation is one of those, and I've invested because of the research I've done.
I've asked some here if they could go back and invest in Apple at the early stages, would they? And the varying and interesting answers I've gotten have ranged from "I'd have better things to do than invest in Apple" to "if Apple were $1 again, there'd be something wrong." Truly chuckle worthy, but telling.
Not everyone will see the opportunity for what it is. Not everyone will take advantage. Weak hands will sell, and weak minds will bash. Only the people who invest with their heads, not just their hearts will make the right moves.
For me, Kin is the Amazon of the Dot Com Bubble. It's where I put my emphasis, my research, my effort and my thoughts. I have invested in many companies and cryptos along the way... I missed out on the Bitcoin rise, but I made money in the Dot Com bubble. I've ridden tech stocks via options for years, and the intrinsically unstable nature of those investments have made the risk of this one much less worrisome.
So the point is this: when the naysayers croak at you, don't worry about it. History is behind us, and if you've done the research I have, you know that Kin is a strong contender to come out strong and vibrant and profitable on the other side.
It's why I'm here, and it's why we're all here. Cheers.
submitted by hiker2mtn to KinFoundation [link] [comments]

Too Many Passwords - The Strings Of Digitalization

Remember those 1980s SCI-FI movies where the action takes place in 2020 and they show a world full of flying cars, holographic advertisements and people with robotic limbs? Well, it’s almost 2020 and we still don’t get to look out the window and see all those things, instead the changes in our society are taking place beneath the surface, in a more toned down manner. It’s all about how money and information moves, how blockchain implementation changes the way we look at everyday tasks. Have you ever wondered how blockchain can potentially transform a city?
Gradual Implementation
Blockchain as we know it has been around since 2008 when Bitcoin was created by the infamous and elusive Nakamoto, but it took almost 10 years for the technology to gain massive popularity and interest. To be more precise, 2017 was the year when the Digital Gold Rush began, Bitcoin and altcoins skyrocketed and all types of ICOs hit the market. From $1,000 to almost $20,000 and from $10 to almost $1,400! That’s how much the first 2 cryptocurrencies (by market cap) moved during 2017 and very early 2018.
Some say “the bubble has burst” but that couldn’t be further from the truth. Indeed, as I am writing this, most coins are down compared to late 2017, but they are still way up if you look at early 2017 prices and besides, a market cannot be gauged by the success or failure demonstrated over 1 year. Also, we shouldn’t overlook one thing: the performance of Bitcoin, Ethereum and other cryptocurrencies shouldn’t be directly associated with the success of blockchain technology because the latter is what can really transform our lives and the cities we live in. Market speculation — buy low, sell high — can be a good source of income if you do it right but real life application of blockchain is the true benefit.
Calling Bitcoin, altcoins or the blockchain a bubble is madness, it’s just like calling the internet a bubble back in the day. Let me tell you about a real bubble: Tulip Mania that started in early 17thcentury in what is now known as The Netherlands. Without dwelling too much into the details, I will simply tell you that some single tulip bulbs were worth more than 10 times the yearly salary of a skilled craftsman. One bulb! Fortunes were made and lost and it all came crushing down in early 1637 when nobody wanted to buy the flower anymore.
The main difference between tulips and blockchain is that with the former, when the speculative incentive is gone, all you’re left with is a beautiful and very expensive flower that nobody wants to buy. Blockchain on the other hand has countless applications across finance, media, healthcare logistics and many others, which are not tied to the price of any cryptocurrency. As the tech becomes more widespread, these uses will become more apparent in everyday life and will gradually transform the cities we live in.
New Payment Methods. Mainstream Adoption Soon?
Many online retailers have already tested cryptocurrency payments and this trend is even present among offline shops. A few online names include Steam (well-known gaming platform), Microsoft, Overstock and Shopify, while offline vendors include KFC Canada, Subway and others. Not to mention there are about 2,200 Bitcoin ATMs in the United States alone at the time of writing. All this means that the world is beginning to adopt blockchain as a form of payment and that more and more retailers will follow.
We can even see changes in the banking system and the way international payments are made. For example, Ripple is actively working with banks and trying to expedite cross border payments as well as greatly reduce transaction costs. One of their partners, Banco Santander has even launched a mobile application for cross border payments powered by RippleNet, allowing to do in just a few clicks what would have taken a long time in the past.
It’s evident that big changes are coming. Maybe not today, not tomorrow, but soon the old ways will become obsolete, just how landline phones or dial-up internet have. I don’t know when flying cars will become a thing but blockchain tech will soon become a lot more noticeable.
Too Many Passwords — The Strings Of Digitalization
Our lives are already dependant on social media, streaming services, online payments and we generally rely on online accounts to define our online personality or to buy stuff. Everywhere you look there’s a “Log In” box and a password you have to remember and type in. If we expect blockchain to take a more prominent role, that means we will be inundated with staggering amounts of passwords to remember.
This begs the question: will we memorize all that information or rely on simple yet functional solutions like Infinitus (INF) to store and protect our online credentials? And since we’re talking about a future where almost everything revolves around blockchain tech and decentralized solutions, I believe it’s only normal that we adopt a blockchain powered dApp to take care of our sensitive information.
Changes Are Coming! Are You ready?
It is no longer a question of if, but when blockchain will see mass adoption. And when it happens will you be ready? And by “ready” I don’t mean having a load of Bitcoins or any other cryptocurrency, but knowing how to use the new technology, how to make the best of its real world applications and more importantly, how to protect your online persona together with your crypto assets. The answer is simple: use a blockchain solution for a blockchain problem and store your private keys with INF — The Smart Designation Repository.
submitted by InfinitusTech to u/InfinitusTech [link] [comments]

Here is why Bitcoin is no bubble

Some good comments I found on the internet:
"As long as people don't understand the Bitcoin system the spread fear will always cause dumps. Tulip and Bitcoin lol. Even compared to 2009 or the dot.com bubble there are many differences to Bitcoin. But the most important difference to understand is the following: The very definition of a bubble in the sense of bankers and "experts" is that a price rises without an appropriate countervalue. This happened with the tulip mania (flowers!), dot.com bubble (fomo in companies without any working products) and the housing bubble (granted credits without an countervalue -> to keep it simple). So what’s about Bitcoin? Well, Bitcoin has an countervalue and this value rises steadily. Its the cost to mine one. Every generated Bitcoin costs a significant amount of fiat money which represents its countervalue. - By the way to wipe out the argument "Bitcoin, as a digital currency is, is nothing worth is utter bullshit". A number printed on paper is worth nothing if you see it like that. Bitcoin is here to stay. It’s worth something. The market cap is very high because of demand, yes. This demand is mostly caused by fomo at the moment, yes. But Bitcoin has a significant countervalue and is built on a system which manages itself and is not controlled by a corporation with greedy managers who make money on the back of others. The market decides whats going on.
Bitcoin has been arround for over 10 years. This is nothing compared to tulip bulbs. Lmfao this is hilarious, more like digital gold.
This comparision is stupid. Tulips are easy to grow. They could make a tulip for everyone that’s what crashed the market. There are 21 million Bitcoins forever. That’s it. Bitcoin could be more valuable than gold. We don’t know how much gold there is in the ground, but there are21 million Bitcoins and everyone is gonna want a piece of that.
Bitcoin is a store of value, a tulip is a flower. The ‘Bitcoin Bubble’ is often compared to the tulip bubble that started in 1636 and rose over 6000% in a number of years. The tulip bubble was when tulips were brought into Holland from Turkey and the Dutch loved the novelty of this new, rare flower. As different colours and patterns of this flower emerged into the Dutch market, it became a fashion statement to own such rare flowers. In simple economic terms, the rarity of the flower (supply) was significantly over-weighed by the demand of the Dutch society, and let to the point where people were selling their houses, land and life savings for a flower! Why would they do such a thing? Because they believed that the tulip price would forever rise. The fear of missing out on a potential profit lead the whole nation into believing that a flower was worth more than a house. Many people argue that this is the case with Bitcoin, I strongly disagree with this comparison because Bitcoin and all the other cryptocurrencies use blockchain technology that will revolutionise the way we live. Blockchain technology is not a fashion statement. It is global in scale and once implemented will provides tremendous value to society. Just like the internet did when it was introduced.
They are already doing it. They know there will only be 21 million Bitcoins. Unlike their FIAT which is printed at will and the central bankers can go negative or do a Crypress and do a bail in. Decentralized money is the future. Hate all you want. I don't care I will lost my ass on bitcoin as I have the past 5 years :).
Its users are investors until its hits critical mass then the daily swings will be less volatile and it will function with moderate price swings. At 1% adoption rates this is basically the internet in 1996.
70 million accounts and coinbase alone is addding 500,000 a week. All the Bitcoin HODLers haven't sold they have went out and educated the masses about it the past 5 years. We are at the beginning of the biggest wealth transfer in history as the paper garbage central bankers print to infinity has an alternative.
Absurd. Tulip bulbs are a good, Bitcoin is a currency. The more investors the higher the confidence and the less likely for value to drop.
Isn't Fiat paper money the biggest bubble in history? Considering it's not backed by gold or any property and it can be printed. I would say Bitcoin is Fiat currency 2.0 the only difference is that Bitcoin can't ever become a bigger bubble than paper money due to its limited supply of coins.
My point is that both Bitcoin and Fiat currency is fake money. If you think Fiat currency is real than I have a bridge I want to sell you. In terms of fake money, Bitcoin is better because there is a limited supply. Ask people in Venezuela how their paper money is working for them. They learned the hard way, that's it's paper and a big bubble. I would take Bitcoin over Fiat any day of the week. Gold is the only real money that exists, there's a reason governments stake gold.
The value is that it’s safe, limited, digital and that its decentralized. That is all it takes. I think it’s here to stay. Governments and their media hate it of course.
The banks/fiat currency are the biggest bubble. How much money do "the people" of the world owe? $200+ trillion. That’s a huge bubble, but we allow the banks to continue with their BS. 200 trillion from interest (money from nowhere).
The tulip analogy is a really bad example. Tulips are: A. Perishable. B. Non divisible. C. Not easily transported. Therefore they could never be classed as currency.
1-If internet goes down, BTC will be the least of your worries 2-If internet somehow gets shut down then banks will not be able to make payments. 3- And most important, there are alternatives to sending btc via internet that EXIST TODAY already. Bitcoin can be transmitted via satellite (https://futurism.com/bitcoin-now-comes-from-satellites-in-space-welcome-to-the-future/), via sms (http://gk2.sk/how-to-push-bitcoin-transactions-via-sms/) and there is even secure USB sticks with Bitcoin (coolest tech) (opendime.com).
What is gold's intrinsic value? You make jewelry from it? For $1300 an ounce? How much would it dropped if it would only be used for jewelry, electronics, etc. and not store of value? I would say over 90%. But you are right, gold is backed by its properties, just like Bitcoin.
What’s common with all bubbles it that the commodity has no real value. Tulips are flowers, real estate market was terribly overpriced, pyramidal schemes offer a stupid idea. Bitcoin is an invention, like railroad and electricity it provides a service of digital gold, but it's much more safe than gold and easy to transport. No one can print new Bitcoins. An no one can restrict it.
Everybody looks at Bitcoin, nothing else. Whatever you do, don't look at Central Banks printing confetti or heaven forbid please please DO NOT look at the derivatives bubble. Derivatives are in essence just bets placed upon other bets by gamblers with little to no ethics or morality but this is so considered safe and legit by the establishment, lol."
submitted by Fizsan to Bitcoin [link] [comments]

Bitcoin rise and fall - be careful!

I decided to write this a few days ago concerning BTC and other cryptocurrencies, enjoy the read and if you have questions about it, feel free to ask: Also like and share this article if you enjoy the read!
Between the years of 1634 and 1637 there was a similar phenomenon to our modern-day Bitcoin (BTC) that we are currently experiencing. It was known as Tulip Mania where the Dutch blew up the price of this flower because of the rarity of it and the increased demand. In one month, the prices inflated just over 2,000% and people were given anything and everything they owned to get a piece of the action. Again, we are seeing something similar with the emergence of cryptocurrencies, but what protected the Dutch and what is protecting us today with these prices? The answer: nothing at all.
Sure, even I have jumped on the bandwagon of buying and selling these currencies and have enjoyed every minute of it, but just as Tulip Mania, we are eventually going to face this infamous “bubble” that major economists are rambling on about. Tulips at their initial release to the Dutch community became a luxury item, where bulbs were being sold at almost 10x what a normal laborer was making during that period. You are certainly seeing something similar with BTC and other coins and the growth that is happening daily. Many are projecting BTC to reach into the million-dollar mark for a single BTC, which at that point even the wealthiest 10% in the world can’t even afford.
We have reached the point that the tulip market reached in November of 1636, futures are starting to be offered on BTC and guess what followed 3 months later? The most abrupt “bubble” popping and a complete market crash. Community members had sold of their homes, livestock, and even the last few bucks they had to their name to acquire these tulips. As the market for BTC continues to grow, even the most basic individuals are putting their minimum wage checks into these exchanges and wallets in hopes of striking it rich, just as their predecessors have done in the past and are currently doing. Apparently, the world never learned from Tulip Mania or the great depression, where people lost everything because they were putting their money in places without any security and ultimately lost every bit of their monetary lives. Maybe it could be put into a simpler comparison of what bitcoin is.
If you have a smart phone, you most likely have downloaded games such as candy crush or clash of clans with those pesky in app purchases for their “currencies.” Probably wondering where I am going with this and you might already know what is being implied. All you have is some in-app currency that you get to play with daily and make a few bucks on, but, it’s just a game. Some guy that literally nobody knows, created some currency and got a lot of people to believe in it, but not really. People purchase these coins and then sell them to get their everyday fiat money in return. If you truly believe in these currencies, why are you not holding on to them and why can’t you spend them at your neighborhood market? All everyone is doing, is making this guy “Satoshi” extremely rich and whenever this guy decides that he’s had enough and the game is over; he just goes “click” and shuts everything done and has ultimately schemed everyone out of trillions of dollars and everyone is left looking at a computer screen with no money in their bank account and wondering what they are going to do going forward.
So, if you are going to get into the game, make sure you know what you are doing and have a plan to get out. You may think I am being a hypocrite because I myself have bought into this, but I have also received my initial investment back and just playing profits. I want everyone to have fun and make a little bit of extra money, but if you believe that this will ultimately take over currencies around the world, you have another thing coming. Until “Satoshi” comes forward, there is public backing of these coins, and the market accepts it everywhere; be careful and invest wisely. Until then, you are playing the ultimate game of monopoly and “Satoshi” owns all 32 homes on the board. Good Luck!
submitted by Mblosser1289 to Bitcoin [link] [comments]

What is so Bad About Tulips?

Despite tulip mania, which is likely an exaggerated myth, what is so bad about tulips?
Tulip Bubble Mythology?
http://www.slate.com/articles/business/moneybox/2004/07/bulb_bubble_trouble.html
In the year 2015 tulip sales in the USA amounted to $50,000,000 usd.
The flower industry of which tulips are a part of accounts for 5% of the Netherlands gdp.
http://theproducenews.com/more-floral-articles/floral/15261-tulips-have-become-holland-s-trademark-flower
The tulip industry hardly dried up and blew away in the wind. It is still with us today playing a part in the world's economy.
Tulips are not indicators of bitcoin's future success or failure. It is like comparing apples to oranges. Or should I say bitcoin to tulips?
https://en.m.wikipedia.org/wiki/Apples_and_oranges
submitted by chronicwastage to Bitcoin [link] [comments]

12-13 16:01 - 'Bitcoin rise and fall - be careful!' (self.Bitcoin) by /u/Mblosser1289 removed from /r/Bitcoin within 19-29min

'''
I decided to write this a few days ago concerning BTC and other cryptocurrencies, enjoy the read and if you have questions about it, feel free to ask: Also like and share this article if you enjoy the read!
Between the years of 1634 and 1637 there was a similar phenomenon to our modern-day Bitcoin (BTC) that we are currently experiencing. It was known as Tulip Mania where the Dutch blew up the price of this flower because of the rarity of it and the increased demand. In one month, the prices inflated just over 2,000% and people were given anything and everything they owned to get a piece of the action. Again, we are seeing something similar with the emergence of cryptocurrencies, but what protected the Dutch and what is protecting us today with these prices? The answer: nothing at all.
Sure, even I have jumped on the bandwagon of buying and selling these currencies and have enjoyed every minute of it, but just as Tulip Mania, we are eventually going to face this infamous “bubble” that major economists are rambling on about. Tulips at their initial release to the Dutch community became a luxury item, where bulbs were being sold at almost 10x what a normal laborer was making during that period. You are certainly seeing something similar with BTC and other coins and the growth that is happening daily. Many are projecting BTC to reach into the million-dollar mark for a single BTC, which at that point even the wealthiest 10% in the world can’t even afford.
We have reached the point that the tulip market reached in November of 1636, futures are starting to be offered on BTC and guess what followed 3 months later? The most abrupt “bubble” popping and a complete market crash. Community members had sold of their homes, livestock, and even the last few bucks they had to their name to acquire these tulips. As the market for BTC continues to grow, even the most basic individuals are putting their minimum wage checks into these exchanges and wallets in hopes of striking it rich, just as their predecessors have done in the past and are currently doing. Apparently, the world never learned from Tulip Mania or the great depression, where people lost everything because they were putting their money in places without any security and ultimately lost every bit of their monetary lives. Maybe it could be put into a simpler comparison of what bitcoin is.
If you have a smart phone, you most likely have downloaded games such as candy crush or clash of clans with those pesky in app purchases for their “currencies.” Probably wondering where I am going with this and you might already know what is being implied. All you have is some in-app currency that you get to play with daily and make a few bucks on, but, it’s just a game. Some guy that literally nobody knows, created some currency and got a lot of people to believe in it, but not really. People purchase these coins and then sell them to get their everyday fiat money in return. If you truly believe in these currencies, why are you not holding on to them and why can’t you spend them at your neighborhood market? All everyone is doing, is making this guy “Satoshi” extremely rich and whenever this guy decides that he’s had enough and the game is over; he just goes “click” and shuts everything done and has ultimately schemed everyone out of trillions of dollars and everyone is left looking at a computer screen with no money in their bank account and wondering what they are going to do going forward.
So, if you are going to get into the game, make sure you know what you are doing and have a plan to get out. You may think I am being a hypocrite because I myself have bought into this, but I have also received my initial investment back and just playing profits. I want everyone to have fun and make a little bit of extra money, but if you believe that this will ultimately take over currencies around the world, you have another thing coming. Until “Satoshi” comes forward, there is public backing of these coins, and the market accepts it everywhere; be careful and invest wisely. Until then, you are playing the ultimate game of monopoly and “Satoshi” owns all 32 homes on the board. Good Luck!
'''
Bitcoin rise and fall - be careful!
Go1dfish undelete link
unreddit undelete link
Author: Mblosser1289
submitted by removalbot to removalbot [link] [comments]

[uncensored-r/Bitcoin] Bitcoin rise and fall - be careful!

The following post by Mblosser1289 is being replicated because the post has been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/7jjzlw
The original post's content was as follows:
I decided to write this a few days ago concerning BTC and other cryptocurrencies, enjoy the read and if you have questions about it, feel free to ask: Also like and share this article if you enjoy the read!
Between the years of 1634 and 1637 there was a similar phenomenon to our modern-day Bitcoin (BTC) that we are currently experiencing. It was known as Tulip Mania where the Dutch blew up the price of this flower because of the rarity of it and the increased demand. In one month, the prices inflated just over 2,000% and people were given anything and everything they owned to get a piece of the action. Again, we are seeing something similar with the emergence of cryptocurrencies, but what protected the Dutch and what is protecting us today with these prices? The answer: nothing at all.
Sure, even I have jumped on the bandwagon of buying and selling these currencies and have enjoyed every minute of it, but just as Tulip Mania, we are eventually going to face this infamous “bubble” that major economists are rambling on about. Tulips at their initial release to the Dutch community became a luxury item, where bulbs were being sold at almost 10x what a normal laborer was making during that period. You are certainly seeing something similar with BTC and other coins and the growth that is happening daily. Many are projecting BTC to reach into the million-dollar mark for a single BTC, which at that point even the wealthiest 10% in the world can’t even afford.
We have reached the point that the tulip market reached in November of 1636, futures are starting to be offered on BTC and guess what followed 3 months later? The most abrupt “bubble” popping and a complete market crash. Community members had sold of their homes, livestock, and even the last few bucks they had to their name to acquire these tulips. As the market for BTC continues to grow, even the most basic individuals are putting their minimum wage checks into these exchanges and wallets in hopes of striking it rich, just as their predecessors have done in the past and are currently doing. Apparently, the world never learned from Tulip Mania or the great depression, where people lost everything because they were putting their money in places without any security and ultimately lost every bit of their monetary lives. Maybe it could be put into a simpler comparison of what bitcoin is.
If you have a smart phone, you most likely have downloaded games such as candy crush or clash of clans with those pesky in app purchases for their “currencies.” Probably wondering where I am going with this and you might already know what is being implied. All you have is some in-app currency that you get to play with daily and make a few bucks on, but, it’s just a game. Some guy that literally nobody knows, created some currency and got a lot of people to believe in it, but not really. People purchase these coins and then sell them to get their everyday fiat money in return. If you truly believe in these currencies, why are you not holding on to them and why can’t you spend them at your neighborhood market? All everyone is doing, is making this guy “Satoshi” extremely rich and whenever this guy decides that he’s had enough and the game is over; he just goes “click” and shuts everything done and has ultimately schemed everyone out of trillions of dollars and everyone is left looking at a computer screen with no money in their bank account and wondering what they are going to do going forward.
So, if you are going to get into the game, make sure you know what you are doing and have a plan to get out. You may think I am being a hypocrite because I myself have bought into this, but I have also received my initial investment back and just playing profits. I want everyone to have fun and make a little bit of extra money, but if you believe that this will ultimately take over currencies around the world, you have another thing coming. Until “Satoshi” comes forward, there is public backing of these coins, and the market accepts it everywhere; be careful and invest wisely. Until then, you are playing the ultimate game of monopoly and “Satoshi” owns all 32 homes on the board. Good Luck!
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

"BitCon: DON'T"

A currency should permit one to express their preference for goods, services and time. That is the essence of currency; it permits you to engage in the intercourse of goods and services without regard to what you produce or desire, provided that someone in the economy values your product or service.
That person could be in the next house over, the next town over or across the nation. It doesn't matter. So long as such a person exists you can transact.
A good currency also allows you to express time preference. That is, your desire to buy tomorrow instead of today.
An ideal currency places no thumb on the scale for any of these preferences. That is, its value is invariant over periods of time. This is important for many people but for business use it can be essential, because many businesses take goods and "refine" them in some fashion. A baker takes wheat and makes bread and pastries; to do so requires time, and he therefore ideally wants the value of currency he exchanges to remain stable during the time between his acquisition of wheat and the sale of the end product. If it is not to remain stable he must know the rate of change with a reasonable degree of certainty so he can adjust his prices to match cost in real terms.
There is a further problem -- businesses in virtually all cases and individuals in many cases are subject to tax. Taxes are a cost of doing business and therefore unknown variation in the value in invariant terms for a currency is therefore quite damaging to the ability to pay taxes. If you can't pay the tax man you're out of business.
When governments adopted currencies and denominated taxes in a given one, they made possible business planning. You could then accept anything but you priced your goods and services in that currency, whether you accepted only that or a whole host of things in payment. This allowed you to stabilize your expected profit margin and thus know you could pay the taxes due to the government.
Before this adoption farmers were frequently dispossessed of their lands by the Lord of the realm, who came through demanding payment of taxes in grain. If you didn't harvest sufficient grain you were screwed and lost your lands. But when payment was made in coin you could always go help on someone else's farm, milk their cows or engage in some other act that had value to someone, get the required coin, and pay those taxes. This was a stabilizing influence in society.
Now here's the problem for BitCon:
Let's say you denominated one month of Internet Hosting in "1 Bitcoin." You accepted payment. Then, in the next few minutes, the value of that coin collapses as happened today.
What happens to you? If your effective tax rate at the expected exchange rate was 25% it has now doubled. There is every possibility you will be unable to pay the taxes due along with the rest of your fixed costs.
If that happens you're done.
This is why businesses should not take Bitcoin.
Sure, when the price was "only" going up it felt great -- it was free money! You got paid 2 BTC for that hosting and guess what -- two days later you were laughing your ass off because you made a huge profit on the FX exchange. If you cashed it, that is.
Nobody in their right mind knowingly takes FX risk with 50% swings in minutes in a common business context. That's nuts. If you're a trader and like speculating in commodities, then sure, have at it. Just make sure that you're ok with the sort of dislocation you saw today, and while you're at it also make sure that you've not deposited funds into a roach motel where you can't get out when you want to -- that is, where there won't be a sudden appearance of "gates" or "limits" preventing you from exchanging back to some other currency and withdrawing the funds.
By the way, that little issue is likely to be a problem too.
Bitcoin is in my view not a currency since it posseses none of the required properties of currency. It is a digital commodity with zero intrinsic value, much like Tulip futures were. Tulip bulbs had actual tangible value, even if small, as they grew into flowers -- futures, on the other hand, had no tangible value at all.
When TulipMania collapsed the government deemed the futures an illegal gambling contract and voided them, incidentally.
You might want to think about that sort of risk too.
I have no intention of ever accepting an alleged "currency" that moves 20, 30, 50% or more in value over a short period of time and you shouldn't either.
submitted by MichaelMorre to Bitcoin [link] [comments]

Tulipmania Biggest Bubble In History : Bitcoin Similar To Tulip Bubble Bitcoin and the Tulip Bubble  MaiView  20190718 TULIPMANIA Lex analysis: bitcoin v tulips  Lex

Now that you know the background, let’s get to ways in which Bitcoin is not like the craze that made those who lost out curse about the Amsterdamned loss they faced. The time frame. Bitcoin has already proven that it isn’t the same sort of flash in the pan as the Tulip Mania – having beaten the six-month mark eighteen times over. If Bitcoin completely revolutionised Money (as if) that still wouldn't be anywhere near the difference the Internet makes. So, Bitcoins are more like tulip mania because almost _everything_ is more like tulip mania. YA Fantasy novels, slogan T-shirts, pizza, marriage, any of these things is more like tulip mania than like the Internet. Many times we hear people say that Bitcoin will crash like the Tulip Mania in the 17th century. Imagine, close to 400 years later, people still talk about one of the oldest if not the first speculative bubble. Tulip Mania is when in the 1637, the contracts of Tulip bulbs in Netherlands went to unprecedented prices and later collapsed dramatically. Historians are still debating whether or not ... Since those comments in mid-September, the price of bitcoin has spiked 268%. While Tulip bulbs rose as much as 1,100% in one month at the peak of their mania, its easy to see the similarities ... Tulip mania was a flower, a beautiful flower that had an unimaginable fragrance with the smell of money. This became a symbol of the Dutch in the late 16th century making them one of the powerful financial grounded countries around that time. However, the native ground of tulip mania is not the Netherlands. It was originally located in the Pamir and Tian Shan mountain ranges in Central Asia ...

[index] [23217] [38896] [13530] [8434] [2626] [41096] [20813] [32804] [9881] [47072]

Tulipmania

Many analysts consider Tulip mania as the first ever economic bubble. Like all bubbles it was set to burst. When no buyers showed-up with actual money, prices collapsed. Share your own views in comments. This video is unavailable. Watch Queue Queue. Watch Queue Queue Queue This video covers the accusation that Bitcoin is nothing more than a speculative bubble, and its comparison to things like "Tulip Mania." Sentdex.com Faceboo... A collection of tulips taken at 'Tulipmania ' at Singapore's Gardens by the Bay Flower Dome.

#