TulipMania and Bitcoin.

Explain Tulipmania : One popular metaphor for Bitcoin is “Tulip Mania” which swept
the Netherlands in late 1636 where for about 4.5 months the price of tulips went up very high,
then crashed back down. This is a metaphor that many people use to denigrate Bitcoin, which
presupposes that Bitcoin has no intrinsic value.

The Bitcoin is innovation no doubt but debatable but the underlying technology is here to
stay . i.e BLOCKCHAIN . Having said that , this is true to an extent . Having a consensus
based decentralized ledger ( Blockchain is truly valuable ) , but the real killer app is having a
currency or token, thereby value. The reason is without cryptocurrency/token or value it’s
really hard to incentivize decentralized stakeholders bcos they provide the “network effects”
and “network ownership effects”.

Bitcoin is “open source money . “

What open source has done to s/w industry ..it has surely not harmed In fact on the contrary it
has ensured that it pushes the proprietary s/w to reinvent, compete and advance further .

Open source ensured its largely meritocracy - “race to the top” phenomenon. So in effect ,
what survives is best of of the breed software ,libraries and packages to leverage.

So if you are not happy with bitcoin .. fork it and add value. How ?
You have an idea to make it 100x faster and secure .. the whole world will chase it.
If not some other cryptocurrency does .. so the point is bitcoin design is evolving and can
evolve further.

So more open , more inclusive. More flexible more stakeholders., less fees , more trust.

Cryptocurrencies are waging a “two-front war” .. War within the cryptocurrencies.. bitcoin vs
ether vs altcoins on low transaction fees , high trust , robust protocol , scalability ,
performance etc and value it bring to stakeholders ..

On the other hand they are competing with fiat currencies .. Regulators will try to pull it
down, power centers – read it central banks central banks are worried about losing their
power .. It’s a game of thrones. Crypto is better than 56% of worlds fiat currencies.

So , this is not about convincing the unbelievers but to educate the curious and stop
preaching and leave thoughts with people. By the way skepticism is good.. it makes things

If whatever I say is true even by 1% , then it makes sense to move 1% of your investment in
to this asset class as a hedge .
If you have an asset class that does not correlate , then it surely makes sense to bet on it.

The risk here is not about the volatility ,, the bigger risk is not being exposed to this asset
class. US public equities are safe till they are unsafe.