Thursday, 21 December 2017
Chart: Follies With Tulips & Bitcoins
The current fever pitch exuberance and euphoria over cryptocurrencies, including the currently leading cryptocurrency Bitcoin, reminds me of the run up to the dotcom bust in 2000.
As of right now, 1.00am on 21 December 2017, there are 1,368 crypto currencies listed on CoinMarketCap.com
Is there enough money in the world to raise the value of these digital alternative fiat currencies vis-a-vis fiat establishment currencies such as the "almighty" fiat toilet paper U.S. dollar to the astronomical "value" of Bitcoin?
I think not and my gut feeling is that with more and more people jumping on the cryptocurrency bandwagon is a prelude to "dotcon crash 2.0".
It is more likely that speculators in Bitcoin, especially those who had bought earlier when its "value" in fiat U.S. dollars was much lower, will take their profit from Bitcoin and use it to speculate on currently cheaper fiat cryptocurrencies, whose "values" are rising and over time, the "values" of these growing number of fiat cryptocurrencies will level out across each respective fiat cryptocurrency.
Below professional statistics firm Statista compares the charts of the speculative "value" of tulips and the speculative "value" of Bitcoin.
All this exuberance over Bitcoin and cryptocurrencies is just another example of IT scheiss.
Dyfed Loesche, 4-5 minutes
During the so-called Tulip Mania contract prices for some bulbs of the recently introduced and very fashionable tulip reached extremely high levels and then dramatically collapsed in February 1637. It was the first reasonably well document asset bubble in history and until now is referred to as the prime example of a market folly.
What this chart indicates is that while technology has advanced greatly over the course of the past 400 years, human psychology has remained the same. Some observers think the rally around the crypto currency Bitcoin might replace Tulip Mania as a reference for a badly overinflated asset bubble prone to burst at any moment.
Then again, there already has been deflation from the peak of a little more than 19,900 to 17,600 dollars per Bitcoin. But nobody knows if the puncture will let the balloon slowly deflate or it will rip it apart, crash landing the Bitcoin.
This chart shows a comparison of price developments during the tulip mania in 1637 and the current bitcoin bonanza of 2017.
Also, check out Matthias Chang's video:-
"2018 Countdown To 2nd Global Financial Tsunami-Malaysia Will Be Devastated. UMNO/Najib Sleeping"
He thinks all this will eventually lead to a major world war between geo-strategic powers.