The tulip told us away from bitcoin!

Reprinted from 100 Author: a cup of air

Some people say that every ten years, the financial market will have some “mindless” crazy events.

Investors switched to another investment from a variety of investments, ignoring these investments are safe, this phenomenon is called “herding”.

The first time in the history of the most crazy herding is “Holland tulip bubble”.

Tulip Bubble

The 16 century, tulip imported from Turkey in Western Europe, by the fanatical pursuit, until now it is still synonymous with the capital market is not rational and crazy.

When the tulip bubble occurs, Holland is a highly commercial country, has a lot of innovation in financial markets.

At that time, Holland has a lot of high risk investment activities, it is proved that the era was the golden age of Holland, at that time, the influx of non professional and novice tulip market.

Many rare varieties of tulip was sold at very high prices, high prices will have investors continue hoarding tulips. By 1636, cheap looking tulip, has reached the equivalent of a carriage, a few horse point, even the naked eye in the bulb not see the transaction after the transfer.

A year’s time, the tulip rose as high as 5900%!

In 1636, the tulip in Holland has been the Amsterdam stock exchange, many neighboring European countries exchange also opened tulip option contracts for speculative capital, the option contract is a kind of margin trading, it can let more low-income people have the opportunity to enter the market to participate in the tulip speculation, and margin trading “small”, so that more crazy tulip speculation.

After the boom will fall, in the first week of June 2 1637 years, when the market demand began to decay, the tulip speculation fell apart in less than 6 weeks, the tulip price plummeted, a total collapse of up to 90%.

Overnight, many people become a pauper is not left, countless wealth beggars became rich, vanish like soap bubbles, some big noble also fall into bankruptcy can not be saved, thousands of people weep.

Bubble bitcoin is the largest in the history of mankind

Recently, there have been bitcoin crash news, bitcoin after a few fall, prices fell from $20000 to $4200, a 2017 year low of 10 months, there is a further decline in the trend.

From $20000 to the highest now 4000 dollars, bitcoin has fallen 70%, countless wealth evaporate, among many people lose everything overnight, reminiscent of Gloria Tang’s lyrics “all foam”.

Do you think you’re fried coins, but the results of the coin copy.

This year, the coin ring made rich fast, easy to make money, in our business history is unique. A few years ago, bitcoin means wealth: “a coin a villa”, widely circulated in the circle.

To this day, but are meant to be free, just thought it was a very interesting game, but now it has found only a cruel joke.

This game crazy and outcome is far more than the human imagination.

2017 is the most beautiful year bitcoin, than money from less than $1000 at the special price rising in December 17, 2017 rose to the highest peak of $19891.99, when bitcoin price at Hongkong, a set of three rooms is not worth 100 coins.

In 2009 the first announced bitcoin exchange rate of $1 in exchange for 1309.03 bitcoin, to $twenty thousand in 2017, bitcoin almost doubled 20 million times, making bitcoin over Holland “tulip mania” and “British South Sea Co hoax”, become one of the largest in the history of human asset bubble.

The nature of bitcoin is a virtual currency, although the name of the currency of the banner, but in fact it is not a real currency, virtual product but a highly speculative.

Want to make money through bitcoin, must be made by the people behind the constantly buying for the person in front of disk access.

Ironically, this typical Ponzi scheme, but few people can see this Ponzi scheme the end result is that millions of people go bankrupt.

History is always surprisingly similar, when in 1637 the tulip market frenzy, a rare tulip Roi de Fleurs price of up to 1000 Holland shield. But by 1722, its price is only 1 of the Holland shield, and are no longer considered as a rare thing.

If we analyze encryption currency, find that when a large number of bitcoins can appear when alternative currency, bitcoin scarcity will not.

Money is the essence of a country’s credit, it must be behind the national law, economy, technology and military as an endorsement, and the money behind must have real wealth and the corresponding, otherwise there will be a bubble. Bitcoin behind not only does not correspond to the true wealth and also because of the continuous mining has led to the destruction of social wealth, its intrinsic value is zero, with more and more digital currency, scarcity does not exist, it will gradually return to the intrinsic value, which is close to.

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