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Because bitcoin and tulips have nothing in common? Bitcoin is a commodity, tulips are a commodity. Tulips went through a particular phase of hype with a famous
by eloff 9y ago
Because bitcoin and tulips have nothing in common? Bitcoin is a commodity, tulips are a commodity. Tulips went through a particular phase of hype with a famous bubble (and crash). It's not irrational to look at bitcoin through that lens. Bitcoin might be new tech, but commodity markets and the human psychology and greed that drive them are old as dirt. Those who ignore history are doomed to repeat it.
- luis_espinoza 9y agoIn my understanding, bitcoin and its supporting technology is a monetary system. So, in my opinion, comparing bitcoins with tulips will be similar to comparing Fractional Reserve Banking with tulips.
- riffraff 9y agobut is bitcoin really a monetary system if it's not being used as a currency, but as a commodity? The increase in dollar value of a bitcoin does not bear any resemblance with an increase in use of bitcoin as a currency. If anything, there seem to be less hype about using BTC to pay for things these days than a few years back.
- eloff 9y agoIn analyzing this, it doesn't matter what something purports to be, it matters what it is actually used as. By and large bitcoin is a digital commodity, not a currency. That may well change in the future, but that's not relevant to the analysis.