It's Official: Bitcoin Surpasses "Tulip Mania", Is Now The Biggest Bubble In World History
Content adapted from this Zerohedge.com article : Source
One month ago, a chart from Convoy Investments went viral for showing that among all of the world's most famous asset bubbles, bitcoin was only lagging the infamous 17th century "Tulip Mania."
One month later, the price of bitcoin has exploded even higher, and so it is time to refresh where in the global bubble race bitcoin now stands, and also whether it has finally surpassed "Tulips."
Conveniently, overnight the former Bridgewater analysts Howard Wang and Robert Wu who make up Convoy, released the answer in the form of an updated version of their asset bubble chart. In the new commentary, Wang writes that the Bitcoin prices have again more than doubled since the last update, and "its price has now gone up over 17 times this year, 64 times over the last three years and superseded that of the Dutch Tulip's climb over the same time frame."
That's right: as of this moment it is official that bitcoin is now the biggest bubble in history, having surpassed the Tulip Mania of 1634-1637.
And with that we can say that crypto pioneer Mike Novogratz was right once again when he said that "This is going to be the biggest bubble of our lifetimes." Which, of course, does not stop him from investing hundreds of millions in the space: when conceding that cryptos are the biggest bubble ever, "Novo" also said he expects bitcoin to hit $40,000 and ethereum to triple to $1,500.
"Bitcoin could be at $40,000 at the end of 2018. It easily could," Novogratz said Monday on CNBC's "Fast Money." "Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well."
As for Wang, here are some additional observations:
I continue this topic and discuss a main driver of bubbles. When we see a dramatic rise in asset prices, there is often an internal struggle between the two types of investors within us. The first is the value investor, "is this investment getting too expensive?" The second is the momentum investor, "am I missing out on a trend?" I believe the balance of these two approaches, both within ourselves and across a market, ultimately determines the propensity for bubble-like behavior. When there is a new or rapidly evolving market, our conviction in the value investor can weaken and the momentum investor can take over. Other markets that structurally lack a basis for valuation are even more susceptible to momentum swings because the main indicator of future value is the market's perception of recent value.
We will publish the balance of Wang's full note "What causes asset bubbles?" shortly, but for now we just wanted to experience a moment of true zen serenity, knowing that we now stand in proximity to an asset bubble the magnitude of which has never before been observed by humanity. Thanks central banks!
I feel like I am the only person that is super keen for Bitcoin to be a bubble. Hopefully the biggest bubble of all time and lasting decades!
I am with you on this :D
When I first saw the chart I was expecting this. Have you checked any Fibonacci on these bubbles? This bubble could be more than double the the size of tulips of even triple. Either way I expect sub $500 BTC before the end of 2020. BTC is a relic. Currently my favorite "currency" is Dash. I don't rule out the possibility of something even better.
https://h.cash/ was designed from ground up to be quantum resistant and they also rip-off some features of Dash. Time will tell. Currently BTC is where Internet Explorer or Nokia was 10 years ago. As technology is evolving rapidly, I'll give BTC 5 years to get to where IE and Nokia are now.
LOL :) I love your anti-BTC campaign :)) I, too, like Dash :) It's hard to pay AU$23,000 for one BTC, when Dash is better and is priced at approx 1/17th of the value of BTC .... I also worry that if something is a currency, then it's meant to be spent - but spending it is to inflict financial self-harm :) So therefore, it's an anomalous object - not suited for its intended purpose. But it's fun to be part of it, for now :)
I got a friend of mine into Dash while it was $300 and he had to format his devices and misplaced the paper that recorded the seed phrase. Talk about a forced HODL.
Proof of Importance system of NEM kind of soften the blow of spending problem. Your Importance rise when you are a part of the New Economy Movement. Your importance increase when you spend NEM. They've got a complex system in place to take care of gaming the system. It's not perfect. But it's certainly good.
Nokia is doing pretty well again
What if it turns out that Bitcoin is not a bubble.
Bitcoin could be $40,000 by the end of the week with the pace that it is going.
I still stand by it is hard to truly have a bubble before Wall Street arrives. We see what they can do adding $140B to the cryptomarket cap in under 48 hours. That is the power of Wall Street.
Thanks zer0hedge for becoming our "news" source.
I think that the difference is that tulip bulbs have very limited usefulness. The ability to hold and spend "money" on goods and services has more value than a pretty flower.
Plus there is not just bitcoin. Many other coins are more useful for shopping etc. Once the grandma ladies like me find out they can buy a cup of coffee with money that increases in value - they will be in.
I think this is proven by sbd losing its peg. The value won out and asserted itself. I hope I'm right and I don't see this "mania" stopping anytime soon.
The record is down, this is just the beginning. I believe that the Bitcoin value will be much higher than $ 40,000 by the end of 2018. Wang is right, but details tell us that Bitcoin is not an ordinary balloon, it's a new currency that replaces paper, a new technology that takes the biggest position in the history of money. Eth is the accompanying money, I believe the value will be at least $ 1,500 by the end of 2018. It's time to invest in Bitcoin, the price is still small, we can get rich in this period of history. It's time to wake up, we need to understand that a new era has come, blockchain technology and powerful technology are changing the world. Thanks for the interesting information, the first time I hear about Tulip Mania - have a nice day @zer0hedge
Predict the future fate of bitcoin is very difficult. But, as long as he does not have any alternative, his price will grow. Although, large countries will resist this very much, trying to keep liquidity in paper money. Good luck to you and good.
It’s scary to think about. I read a crazy conspiracy theory that someone created bitcoin to destroy the middle class
I agreed with u bro.
Good Post 👍👍👍