SEVEN Reasons Why Bitcoin is NOT Tulip Mania
The Tulip Bubble
People who compare Bitcoin to tulips do not understand how Bitcoin works. Bitcoin is nothing like Tulips. Due to their physical nature, Tulips have more in common with gold and silver than Bitcoin. In most cases, these folks are simply restating what they have heard or read in the mainstream media (argument ad nauseam logical fallacy). They would be best served to do some research into Bitcoin and how it actually works before dismissing it.
Bitcoin is easily transferable. In many ways, this makes it superior to other traditional safe haven assets like gold and silver which are subject to taxes and confiscation across borders. Try buying something from China with gold... it's not that easy.
Bitcoin is distributed vs centralized. Distributed processing removes the control from a select few and gives it to the masses, empowering the people instead of the ruling class elite.
Bitcoin is more secure than traditional centralized systems. The distributed nature of Bitcoin makes it more difficult to hack although exchanges are a known point of vulnerability. Never keep your bitcoin with an exchange. ALWAYS make sure you have control of your private keys!!!
Bitcoin is more reliable than conventional payment methods. Again because of the distributed nature of crypto currency, it doesn't go down as often as say, your Master Card scanner or J.P. Morgan Chase account, both of which go down several times a year. Again, if the transaction is being converted into fiat currency, you will require an exchange and exchanges have a tendency to be a bit quirky at times (Coinbase goes down a lot). However, in a world where Bitcoin is accepted as payment you don't really need an exchange, just the miners.
Bitcoin is going on eight years old. The Tulip Mania bubble didn't last half that long. That is one of the big differences between a fad and an emerging technology. Fads burn out while emerging technologies have staying power.
Despite all of these technical details, THE MAIN REASON THAT we are not in a bubble (yet) is that my Mother and neighbors are not talking about Bitcoin. A few years ago, no one had heard of Kodi. Then one day everyone was talking about it. It was only a couple months later that there was a crackdown on Kodi and we started seeing apps go dark. We are a long way from that. When my Mom asks me about bitcoin and my neighbors start posting on how to mine bitcoin, then I'll know we are at the top. Speaking in terms of market capitalization, we have a long, LONG way to go.
Folks who try to compare Bitcoin to Tulip Mania would be better off comparing it to pet rocks, beanie babies, or spinners. There is a big difference between a fad an an emerging technology. Blockchain technology is here to stay and has tremendous value in a world where the select few would rule over the masses. It gives the power to the people to rule themselves. Of course there will always be those who will argue against people having control over their own destiny and that we'd be better off being controlled by a pre-selected few. If power corrupts, then absolute power corrupts absolutely. This appears to be the case today with run away central banks, MSM widespread propaganda, and government corruption via special interests. Blockchain technology stands to disrupt all of this! It goes a LOT farther than currency.
Tulips are more like SPINNERS
If you want to compare Bitcoin to something, look to fire, the wheel, written language, or the internet. It is an evolutionary response to a growing problem of wealth and power collecting with a select few. It is a redistribution of this wealth and power back to the masses.
That sounds pretty good to me.
