5 votes

How are Bitcoins like (or not like) Tulips?

Would someone please explain this analogy to me? As far as I can tell they are both unique commodities that have offered very different qualities for the time periods they gained popularity in. But much of what I keep hearing in regards to Bitcoins surging popularity is, "Tulip mania all over again!"

Help me understand the similarities and/or differences between a pretty flower and an internet cryptocurrency. Thanks!

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People don't put their bitcoin out on the ledge for the

world to see.

9-11 was a panda job.

Lets pretend that back in the

Lets pretend that back in the day anybody on earth could create a magic flower pot for free that could have special tulip bulbs instantly teleported between them no matter where they were on the earth. And only 21 million of these flower pot teleporting bulbs were ever created. Each of these bulbs could also be subdivided to the 8th decimal. In fact some flower pots could also be created represented only as a unique 36 digit number. A number that when turned back into a magic flower pot would contain all bulbs stored therein.
If this were true then I would say that there is not much difference between the two.

Dunno, but

tulips on your organ are better than daisies on your piano.

When a true genius appears in the world, you may know him by this sign: that the dunces are all in confederacy against him. ~J. Swift

All bitcoin threads should just redirect...

...to that ad "How Penny Stocks Create Millionaires Every Day."

;-)

For those who missed out on the BTC mania, there's always the pinksheets...lol

But anyway, here's the difference between the tulip and BTC manias. In the former, speculation was built on a foundation of strong consumer demand. In the latter, the speculation is built on air.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

value of gold on earth 7-8t$ from what i see

bitcoin value only 8b$

The people that are making the comparison between

Bitcoin and Tulips are just making the comparison between two bubbles not between products. All bubbles have their own “canary in the coal mine” assets….all bubbles are the same, just different assets to distinguish them.

Read Charles Kindleberger”s ……Manias, Panics and Crashes a History of Financial Crises.

“Those that will lose….and there will be plenty, will say they were swindled but the reality is they have more money than brains and don’t understand how a BID/OFFER market works. They will cry for government intervention so this kind of thing never happens again and the government will be more than happy to oblige, because there is no better way to keep the monopoly of money in the government hands them for the people to demand it.”
Goldspan

Asset bubble

Bitcoins are like tulips

because they will eventually wilt away like tulips.Both Bitcoins and tulips have and can be used as a currency for some time but just like all paper currencies and paper assets they will eventually be worthless.They are both ghosts of money.

So far, bitcoin continues to provide global

BTC continues to provide global, authenticated peer to peer transactions.

Government tenders are only useful when being used. But it is of wealth that sublimates.

The Federal Reserve has been increasing the tender supply 7.4% per year since 1913.

The Federal debt, priced in Copper, Silver and Gold has increased about 3% a year.

In the same time, government and their cronies have profited 10.4% per annum.

Congress hopes to stick the taxpayers with the debt.

If a miners can keep the system operational by finding the unique key, they benefit. In the meantime they have and operational system for secure quantity exchanges.

Free includes debt-free!

What are your reasons and

What are your reasons and evidence to substantiate this claim? Tulip mania was centrally located to a small area, I would say one is based on something like beanie babies and has no intrinsic value and the other may not be tangible, but has massive amounts of intrinsic value for the services it can provide and its very nature.

?

Bitcoins have absolutely no intrinsic value. They only have the value that we place on them when compared to goods and services. Tulips, on the other hand, have intrinsic value.

People like pretty flowers...

NOTE: I am not advocating violence in any way. The content of the post is for intellectual, theoretical, and philosophical discussion. FEDS, please don't come to my house.

One is a flower, the other is

One is a flower, the other is a currency....you can't send tulips instantly across the globe for little to nothing, and you cant buy goods with tulips.

He's referring to 'tulip mania' in 1600s Netherlands...

http://en.wikipedia.org/wiki/Tulip_mania

I would say that bitcoin is popular as an alternative to fiat currencies, whereas tulips were valued only as speculative vehicles.

9-11 was a panda job.

How is it an alternative

when it's value is measured in the fiat currency to which it claims to be an alternative?

If it is helpful for you to think in terms of dollars, do so.

If it is easier to think in terms of quarter-pound cheeseburgers, think in terms of quarter-pound cheeseburgers.

Currently bitcoin is exchanging at a rate of about 200 cheeseburgers.

Others use Big Macs:
http://www.economist.com/content/big-mac-index

9-11 was a panda job.

Didn't you just make my point though?

You still used USD as the base currency. If you can't buy a Big Mac with a Bitcoin without first exchanging it for USD, then BTC are directly tied to USD.

Do you even fiat, bro?

Don't you understand that BTC has value only because of demand? Sure, there is work done to "create" BTC, but if demand falls, or people realize they can't actually spend BTC, then the value plummets. We saw this with the first BTC bubble, and we will see it with this one.

Don't get me wrong, people are STARVING for an alternative currency, but BTC is not one. It is merely a store of USD. An electronic version of FRN's, just more volatile.

It would be like calling cocaine a currency. Yes, in certain areas of South America it basically functions as one, but that is due to localized demand. If supply suddenly expanded, the value would drop. Same with demand falling. If everyone stops using blow, the price would fall. Nobody is SPENDING BTC, they are only trading it. There is a difference.

correct

on all fronts. except some stores will accept straight bitcoin (who then of course, convert to USD)

Wow - wrong, wrong, wrong, wrong, and

almost right - but still wrong.

9-11 was a panda job.

Let me ask you a question -

Do you trust Mt. GOX? Tibanne? DO you know anything about them? Do you know about the wallet thefts that have occurred in the last few months? Do you know about Tibanne shutting down trading to control the price of BTC? Are you certain that each and every BTC doesn't carry an embedded trail of who owned it when?

People always make money on bubbles. Until they don't. Have fun, and hope that I am wrong.

If I say

I'm right 5 times to your 4 wrongs, does that make me right? I mean, if we are just taking each other's words for fact.... Maybe if I type in all caps? Does that make my argument more valid?