Bitcoin (BTC) and cryptocurrencies look nothing like the Tulip Mania of the 17th century even after their rapid gains, one macro investor says.
In a tweet on Feb. 15, Dan Tapeiro, co-founder of 10T Holdings, argued that in terms of price relative to average income, Bitcoin and Ether (ETH) still have a huge way to go before challenging tulips.
Bitcoin vs. tulips: There’s no comparison
Tulip Mania was a brief but intense speculative bubble in what is now the Netherlands that lasted only a matter of months between late 1636 and February 1637.
While only impacting a tiny section of the economy, at its height, a single pound of bulbs cost a reported 1,500 guilders — roughly equivalent to four years’ salary for a skilled carpenter. The implosion, which had unknown origins, caused a 90% price drop.
Bitcoin naysayers frequently compare bull runs in the cryptocurrency to Tulip Mania, arguing that the two assets’ “intrinsic value” are essentially all but absent and speculation rules the market.
In terms of raw numbers, however, BTC/USD hardly trades at ten times the average salary in the United States, Tapeiro says.
“No mania in #bitcoin yet,” he Title: Bitcoin must cost 10X more with 10X less utility to match Tulip Mania — Investor
Sourced From: cointelegraph.com/news/bitcoin-must-cost-10x-more-with-10x-less-utility-to-match-tulip-mania-investor
Published Date: Mon, 15 Feb 2021 13:30:00 +0000