1636 was a very good year, and 1637 was a very bad year.
The world experienced Tulipmanie, or infamously remembered as the Dutch Tulip Mania. At the height of the bubble, a single stem Sempres tulip was exchanged for 12 acres of land! But by February 1637, this mania was turned on its head.
Ever since then, the world has seen the South Sea Mania (1700s), the Florida Real Estate Craze (1926), the Great Depression (1927), the Asian Crisis (1997), the Dot-Com bubble (2001) and finally the sub-prime market crash (2007).
With 2018 almost over, we are possibly getting ready for another Tulip Mania, this time with Bitcoins?
Bitcoin is the most popular digital currency.
What is Bitcoin and why does it matter?
Unless you have been living under a rock in the last 5 years, well done on NOT having heard of Bitcoin! But if you have heard of Bitcoin but still confused on what it actually is, congratulations! You are not alone. This new phenomenon all started in the late 2000s after the housing crash. A person (or thing, people are still arguing about this) called Satoshi Nakamoto introduced Bitcoin to the world. If you are keen to know what it is, watch this quick video by Mashable: What is Bitcoin and how does it work?
Has Bitcoin peaked?
Now that you know a bit more than everyone else on this digital currency, let’s see how it did in prices.
And if you’re thinking you’re seeing a pulse of a hedge fund trader, you’re probably not too wrong.
This is a classic example of supply, demand and hysteria. As Bitcoin was gaining traction, many people started paying attention. This outstrips demands, as the number of bitcoins mined was not quick enough to meet the number of demand (and it’s also partly how bitcoin was designed to work). The mania continued right through 2017, and it was even speculated to pass $100 000 price point.
