Is Bitcoin a bubble or a success story?
There have been many economic crazes and crises in history.. Will Bitcoin take its place among these madness in history or is it a success story?
Is Bitcoin a bubble or a success story?
We will try to find an answer to the above question by taking the example of historical financial and economic bubbles.. In economics literature, the word “balloon” is used for overvalued assets.. If an economic asset is overvalued, there will definitely be a serious correction in its prices in the future and it will fall to the required value.. So “the balloon will burst!” Naturally, we ask the question “Is Bitcoin a bubble”.
The balloons that have entered the “economic literature” in the historical sense are as follows;
Tulip Balloon took its place in the literature as the oldest known economic balloon. Some researchers also record the event called “The Tulip Bubble or Tulip Madness” as the first financial crisis.
There was an extraordinary interest in tulips and tulip bulbs in the Netherlands between 1636 and 1637. is happening. Exchanges of tulip bulbs were established, and the possession of assorted-coloured tulips was considered a symbol of wealth and status.. Tulip prices started to increase at a level that could be called crazy. So much so that the prices of some special types of tulips became equal to the prices of the houses.
A British traveler’s eating the tulip bulb, thinking it was a normal onion, and the adventures that followed entered the literary texts.. What do you think happened in the end? The expected happened and the tulip bubble burst and the tulip bulbs fell back to the price they should have been.. However, the “flower market” still continues as an important economic sector in the Netherlands.
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Following In the chart, we see the bubble in Tulip, Mississippi Company stocks, South Sea Company stocks and Gold prices. Bitcoin is also included in the chart. In the chart, we see the peak value of Bitcoin in the last month of 2017.. It is noteworthy that the highest volume bubble is Bitcoin in the chart below.
However, Bitcoin stands out from other indicators!
In the chart below, Bitcoin is a correction. enters an even crazier uptrend after experiencing. So history does not repeat itself for Bitcoin.. Bitcoin is moving on a different route.
Or there are unique changes in this period, which we call “post-modern”.
Let’s end our article with the words of the last president of Czechoslovakia:
“We live in a post-modern world: Everything is possible, but nothing is certain!”