What do tulips and bitcoins have in common?
In 1636 rare tulips were introduced to the Amsterdam Stock Exchange due to their increasing demand. Many thought that the passion for tulips would last for ever, before the ‘Tulip Bubble’ burst in 1638 a Semper Augustus was worth 5,500 Florins which was the same price as a luxurious mansion at the time. Today, Netherlands Horticulture takes up 24% of the world’s horticulture, an 80% share in bulbs and 50% of all floricultural products.
Today we have many other peculiar forms of currency, one of which is the bitcoin: an open source, digital currency and peer-to-peer payment network. 21 million bitcoins have been released slowly over time by ‘computer miners’. As internet access becomes more available across the globe, it is thought that bitcoins will also expand. But is this a bubble much like that of the tulips between in 1635 and 1637?
In mid-2014 it is thought that each bitcoin will be worth $10, whilst in 10 years they could be worth $98,500 each.
How (And When) The Fortunes Of The World Are Made | Master Of Finance