The rise and crash of cryptomania draws obvious comparisons with the infamous tulip mania in 17th Century Netherlands. The comparison chart below is eye popping because... it’s from 2017!! Bitcoin was going for $20.000 back then, so bitcoin’s recent spike to $65.000 easily outdistances the tulip madness, putting the top at around 110 on the left scale. In other words, the CruptoBubble is (was?) easily twice as manic as the TulipMania.
Aahhh, but cryptos are not tulips, one may object. They are the future answer to fiat money (as if the faith in cryptos is somehow different, but, anyway...). So, my memory went back to silver. In the early 1980s silver prices spiked almost 30-fold due to a combination of inflation, mass hysteria about a “worthless dollar” and, best of all, manipulative cornering by the Hunt brothers.
Hmmm... does that remind anyone of today? Including manipulation of a guileless and now gutted public?
thanks for the answer. appreciate it.
ReplyDeleteand for your historical perspective;
i guess money wise, the U.S. always has one more life left... it can always go back onto the gold standard... you guys still own most of the gold. =)
Using log charts on high flying assets provides a larger picture perspective.
ReplyDeleteSomeone said that there's a reason for why the first three letters in Crypto are Cry, Lol
ReplyDeleteinteresting thing about the Mississippi bubble (second worst on the chart), it was created as an "alternative" means of funding the french government, with its collapse being a major contributing factor to our much beloved, French Revolution..., which (liberty, equality and death) is considered by the Neo-liberals to be the source of civilizing human rights...
ReplyDeletewe are all set for a new revolution with a new right... right to pay without work...
have you noticed how previous revolutions ask for bread... this time, people ask for work... the reason is the "work" is not actual work... they are asking for pay... the rest of the world can do the work.
ok... I am being deliberately nasty..... sorry couldn't help myself. =)
Popular revolutions.... almost always a result of a pyramid-like concentration of wealth and living standards. It is a fact of today’s USA and explains the Trump Phenomenon. It also explains the current monetary/fiscal insanity: throw money to the masses to keep them quiet. Hopefully no one (China) will notice and take advantage... yeah, right...
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