*The 16th century was widely known as the Dutch Golden Age where contract rates were decided bases on Tulip bulbs.
This bubble burst in 1637 and is widely regarded as the first speculative bubble which wreaked havoc on the local Dutch economy and sent it into a whirlwind.
Since then, tulip mania has been taught in leading schools around the world and presented to students as an excellent way to ruin a perfectly good economy. The idea behind a speculative fever is that it is based purely on supply and demand, but has no safeguards. So, to make an analogy to modern-day finance, Bitcoin can easily be equated to Tulip Mania, since the virtual currency’s price index is purely driven by market forces and has no central bank which monitors the influence of interest rates or inflation on the digital assets.
Still, when push comes to shove, Bitcoin has been outperforming Gold, Euro, and basically every stock which is traded today in the financial markets.
So while it is true that the volatility is extremely high with Bitcoin, the fact that Paypal has clearly said that it will “enable cryptocurrency as a funding source for digital commerce” has legitimized crypto and turned it almost overnight from a questionable asset to a highly sought-after virtual currency.
What Are The High-Profile Investors Saying?
Paul Tudor Jones is a macro investor which has recently invested in Bitcoin contracts and is actively engaged in day-to-day trading of virtual currencies. In his interview with Yahoo Finance, he clearly stated that he believed Bitcoin will “go substantially higher” and recommending it as a strong buy.
Tyler and Cameron Winklevoss have already made their millions, but own “Gemini” which is one of the biggest cryptocurrency exchanges. That, in itself, says a lot.
Michael Novogratz is the CEO and chairman of Galaxy Digital Holdings. His investment fund trades manage and advise clients regarding blockchain-related assets. He is considered to be one of the greatest proponents of Bitcoin and digital currencies. Novogratz claims he has generated 250 million dollars investing in Bitcoin and Ethereum and bought a private jet with the money he generated.
How Long Will This Current Positive Trend Last?
At some point, the stats will start regressing towards the average, but so far this incredible bull run has demolished any ideas that Bitcoin will evaporate or disappear into the abyss much like Tulip Mania. That is the most important factor, and the fact that perception has dramatically changed will ultimately lead to the increased usage of virtual currencies.
Fertile Ground For Scammers
It’s not all good news when Bitcoin is concerned. Savvy marketers, affiliate networks, and media agencies have jumped on this bandwagon and are using the media hype to promote scams and various get-rich-quick schemes. We did a bit of snooping around and found out there is a lot of chatter about a trading robot named “Bitcoin Prime”. We searched for a review and were able to find one that actually explains how the scheme operates and who is behind it.
Do Your Research, Don’t Be Lazy!
The rule of thumb is to always do your research. If you are unsure it’s always a smart move to ask a friend or relative. In most cases, they will tell you the truth since they have no hidden agenda and have your best interest at heart.
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