Maintaining the illusion of comparing Bitcoin (BTC) to Dutch tulip bulb bubbles. Technology develops faster than nature and decentralized networks have more financial utility than a bunch. Bitcoin is a technology, tulips are plants, and no prudent person can take the comparison much further.
The 17th-century market bubble Tulipmania, where the price of flower bulbs has risen due to speculation by Dutch investors, has led to a major catastrophe. Prices exceeded the average annual income by six times. The rarity of bulbs has become one of the most expensive things on the planet.
Although the Bitcoin network has been in operation since 2009, comparisons with the tulip bubble continue. Annoyingly. Last February, Gabriel Makhlouf, a British economist and member of the European Central Bank Council, reminded us of Bitcoin: “Three hundred years ago, people kept money in tulips because they thought it was an investment.”
Related: Bitcoin Price Prediction Using Quantitative Model, Part 4
Again and again, Bitcoin opponents use tulipmania to justify their myopic expectations. The stories of Tulip Mania were popularized by the Scottish journalist Charles Mack in his 1841 book Memories of the extraordinarily popular illusion and the insanity of the crowd. As McKay writes: “A golden bait hung temptingly in front of the people, and one by one they ran towards the tulip-mart like flies around a pot of honey.” He continued: “The royal family, the citizens, the peasants, the mechanics, the sea-men, the footmen, the maids-servants, even the chimney-sweepers and the old-clothes-women drowned in the tulips.” When the tulip bubble burst in 1637, however, Mack claimed, the Dutch economy was devastated.
Although the irrationality of the situation makes for a good story, scholars have noticed that Mack’s retelling of Tulip Mania may not even be true. This version of events, in particular, is not supported by historians. Anne Goldgar, professor and author of early modern history at King’s College London Tulipmania: Money, honor and knowledge in the Dutch golden age, Explains why the Mac version is not added.
“It’s a great story and it’s a great story because it makes people look stupid,” said Goldgar, who lamented that a serious economist like John Kenneth Galbraith had parroted Mack’s account. A brief history of the financial upheaval. He added:
“But the idea that Tulip Mania has caused a great deal of depression is completely untrue. As far as I can see, it has had no real impact on the economy.
In addition to the Dutch Tulip Mania, the bull market of blockchain technology is sometimes written as a bubble like the dotcom bubble. This is a good, though wrong, comparison. In all its forms, including crypto, DFI or unwanted tokens, the Internet of Things has yet to enter a bubble stage or show up in all its uses. We are the equivalent of the dot-com era of the mid-nineties, and nowhere near the bubble stage.
Related: Is crypto moving towards its ‘netscape moment’?
In addition, the impact of the dot-com bubble on humanity was far less than the impact of the Internet, a pattern that blockchain will probably follow বিশেষ especially when compared to tulip bulbs. The bull markets of the past in crypto have had a much more significant impact than price gains. In 2013, the world recognized that Bitcoin existed. In 2017 and 2018, they acknowledged that crypto exists. Since 2011, many projects have become North-Burgers – it seems that many projects were just to raise money – that time is nothing more than a foretaste of what is to come.
There is no resemblance to Tulip Mania
The recent 2020-2021 bull market, the first since the initial currency proposal (ICO) mania, has never been the big bull market that many have been waiting for. Rather, like the 201–201 like, it was another showcase of what the future might hold, putting the blockchain in the spotlight.
During the upcoming bull market, which is probably a few years away, leading institutions will include Defy and Crypto. This process has already begun. Meanwhile, employees of FAANG (Facebook, Amazon, Apple, Netflix, Google) are looking to create crypto landscapes by looking at writing on the walls and intuitive products. Anyone in finance should explore defy and think, “I’m going to lose my job if I’m not careful.” Winklevosses once said that every FAANG company will have its own crypto project, a process known as hyperbitcoin.
This departure from DFI indicates that the future of blockchain fintech, not just a bubble. We are still so early. During the dot-com boom, technology people began to abandon the companies they worked for and began to build their ideas and challenge the user experience (UX) and user interface (UI) of the time. Subsequent improvements and UX and UI design make the Internet easier and eventually bring it to every home. Brilliant blockchain programmers and developers are pushing the envelope much more vertically. But very little is pushing the boundaries of UX and UI. That’s the next thing.
Related: To accelerate the adoption of cryptocurrencies, we must first improve the user experience
Since blockchain UX and UI are not particularly user-friendly, the average organization will not be able to adopt and integrate the system into their pre-existing processes. After leaving the green pastures of the blockchain, Silicon Valley and Wall Street talent will begin to take things forward. Top-tier funding and projects are looking to improve blockchain UX and UI for upcoming showcases.
Once technologists realize the future of blockchain, they will come up with a unique skill set that will push the boundaries of UX and UI crypto-powered Internet. As in the dot-com era, technology will be easier to use and will be featured more regularly in everyday life.
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Jonathan Libby CEO and founder of Steady State. In enjoying the meme and researching the global opportunities offered by crypto, Jonathan is actively creating a new standard for DFI insurance. After spending a good portion of his college career researching crypto coverage and yield farming at the University of Maine, Jonathan has spent time helping and educating the U.S. Senate about crypto and alternative solutions.