Bitcoin Buries The Tulip Myth After 17 Years Of Proven Resilience...

ETF expert Eric Balchunas argued Bitcoin's 17-year track record and multiple recoveries make tulip mania comparisons obsolete despite recent criticism.

Bitcoin can no longer be compared to the “Tulip Bubble” due to its endurance and resilience over the years, according to Eric Balchunas, Bloomberg’s exchange-traded fund expert.

“I personally would not compare Bitcoin to tulips, no matter how bad the sell-off,” said the senior ETF analyst on Sunday.

Balchunas pointed out that the tulip market rose and collapsed in around three years, “punched once in the face and knocked out,” but Bitcoin (BTC) has “come back from like six to seven haymakers to reach all-time highs and has survived 17 years.”

Some people just hate this asset and want to enrage the people who like it, and that will probably never change, he opined.

Earlier this month, “The Big Short” investor Michael Burry called it “the tulip bulb of our time.” In 2017, JPMorgan CEO Jamie Dimon famously said Bitcoin was “worse than tulip bulbs” and a “fraud.”

The Dutch tulip mania was a speculative frenzy in the Netherlands during the Dutch Golden Age. Tulip bulbs, which had been introduced to Europe from Turkey, became status symbols among wealthy Dutch merchants.

Prices began rising rapidly in 1634 and reached peak mania in 1636, when some rare tulip bulbs sold for more than the price of a house in Amsterdam. The market suddenly collapsed in 1637 with prices plummeting by over 90% in a matter of weeks.

Related: ‘Rich Dad, Poor Dad’ author warns Bitcoin ‘bubble’ could burst soon

The tulip mania is often cited as one of history’s first recorded speculative bubbles, and gave rise to the famous pump and dump chart pattern.

Source: CoinTelegraph