Is this Tulip Mania? Bitcoin, Ethereum, cryptocurrency and why it doesn't matter or could even be a good thing.

So we have all heard about Tulip Mania and by now the claims people make that Bitcoin is in a bubble or that Ethereum is in a bubble or Crypto in general is in a bubble and it is a repeat of Tulip mania.

Briefly Tulip Mania was a Dutch tulip craze that peaked in 1637.  Folks were buying tulip bulbs for many times the yearly salary of a worker.  Speculation was rampant and investors were always looking for the greater fool.  Eventually the bubble burst and tulips corrected in valuation to more normative prices and many people were financially destroyed.

So the Tulip market crashed but you may ask where is the tulip market today?  Well, it is nothing short of phenomenal.  The Dutch create about 4.3 BILLION tulips each year which is 90% of the worlds tulips.  Thousands of hectares of land.  Some of the new rare breeds of tulip bulbs are worth hundreds of dollars apiece.  The Dutch flower industry accounts for 5% of the nations entire GDP!!!  Who knew?  I didn't.

Now imagine that our various cryptos get over valued and there are crashes.  Yes will likely happen.  The entire market may crash (it seems to be correcting today.)  Here is my advice that is often repeated, don't invest more than you can afford to lose.  Be there at the bottom, there will still be a market.

Crypto is not leaving anytime soon.  It is here to stay and its utility is greater than that of tulips or flowers.  Crypto currencies have the capacity to meet so many human needs, to disrupt, remove friction, to give greater financial freedom, and to empower. 

If there is a major crypto crash it won't matter, it will come back just like Tulips.  Tulips have massive value today.  Just imagine if crypto can obtain 5% of the world market in remittances, store of value, commerce in general etc.