4 ms·

The difference is that tulip bulbs were not a new technology with a compelling use case that keeps reaching wider and wider audiences.

mikekchar 9y ago
That's such a weird comment, because they literally were. I think I understand what you mean, but I also think that you underestimate the impact that the introduction of the tulip to Europe had on the economy. If you browse through the Wikipedia page, I think you will find it interesting: https://en.wikipedia.org/wiki/Tulip_mania https://en.wikipedia.org/wiki/Tulip_mania Also interesting is the effect that it still has on the economy. Some of the big flower monopolies that still exist today (nearly 400 years later!) were created by people who speculated on tulip bulbs and diversified quickly enough (mostly by using profits to buy up land). We tend to think about things from our own perspectives, but when you are looking at that time period, imports of agricultural products to the wealthy is what ruled the world. Just like they were able to saturate their market, so will we with abstract financial products. Those who are able to diversify quickly enough will probably be the next big winners. Those who keep buying graphic cards will probably be the next big losers.
taw55 9y ago
Pyramid schemes and appealing to ideologues isn't what I personally would call a compelling use case...
hueving 9y ago
In addition to mikechar's sibling comment, keep in mind that the blockchain technology can still be used for all kinds of stuff even if Bitcoin and Ethereum completely collapse to zero. They are just specific implementations and there is nothing particularly unique about them technologically compared to any given fork of the same code.
- rothbardrand 9y ago
  Your thinking is exactly where I was in about 2012. The network effects is why bitcoin has remained so valuable in the face of, say, litecoin which is arguably better technologically.

mikekchar 9y ago

That's such a weird comment, because they literally were. I think I understand what you mean, but I also think that you underestimate the impact that the introduction of the tulip to Europe had on the economy. If you browse through the Wikipedia page, I think you will find it interesting: https://en.wikipedia.org/wiki/Tulip_mania https://en.wikipedia.org/wiki/Tulip_mania Also interesting is the effect that it still has on the economy. Some of the big flower monopolies that still exist today (nearly 400 years later!) were created by people who speculated on tulip bulbs and diversified quickly enough (mostly by using profits to buy up land). We tend to think about things from our own perspectives, but when you are looking at that time period, imports of agricultural products to the wealthy is what ruled the world. Just like they were able to saturate their market, so will we with abstract financial products. Those who are able to diversify quickly enough will probably be the next big winners. Those who keep buying graphic cards will probably be the next big losers.

taw55 9y ago

Pyramid schemes and appealing to ideologues isn't what I personally would call a compelling use case...

hueving 9y ago

In addition to mikechar's sibling comment, keep in mind that the blockchain technology can still be used for all kinds of stuff even if Bitcoin and Ethereum completely collapse to zero. They are just specific implementations and there is nothing particularly unique about them technologically compared to any given fork of the same code.

rothbardrand 9y ago
Your thinking is exactly where I was in about 2012. The network effects is why bitcoin has remained so valuable in the face of, say, litecoin which is arguably better technologically.