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Tulips, Myths, and Cryptocurrencies (May 2017)

Source: Stratechery.com

Ben Thompson:

Everyone knows about the Tulip Bubble, first documented by Charles Mackay in 1841 in his book Extraordinary Popular Delusions and the Madness of Crowds.

[…]

Thanks to Mackay’s vivid account, tulips are a well-known cautionary tale, applied to asset bubbles of all types; here’s the problem, though: there’s a decent chance Mackay’s account is completely wrong.

Insightful writing as always by Thompson. The gist being: The nature of “the tulip bubble” is probably misunderstood. But even if it wasn’t, that doesn’t mean it’s a great comparison for what happening with Cryptocurrencies today.

Two further points which he doesn’t touch on:

  1. Tulips are still an item of value;
  2. The Netherlands still lead the world in them.