Bitcoin (BTC) and cryptocurrencies do not look like the tulip craze of the 17th century, even after quick wins, says the macro investor.
In a tweet on Monday, Dan Tabiro, co-founder of 10T Holdings, said that in terms of price versus average income, bitcoin and ether (ETH) still has a long way to go before challenging the tulips.
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The tulip craze was a short but intense speculative bubble in what is now the Netherlands that lasted only a few months from late 1636 to February 1637.
Although only a small part of the economy was affected, one pound of bulbs at a height cost 1,500 guilders – the equivalent of a skilled carpenter’s four-year salary. The explosion, the source of which was unknown, caused prices to fall by 90%.
Bitcoin skeptics often compare cryptocurrency bullies to tulip addiction, arguing that there is essentially no “intrinsic value” of assets and that speculation rules the market.
When it comes to primes, Tapeiro said the BTC / USD rate is barely 10 times the average US salary.
He summed up that there is no #Bitcoin craze yet.
“During the Dutch tulip craze, tulips were in circulation at 10 times the average wages of ‘craftsmen’. “Today the average salary of a handyman is about 32 thousand. 32k x 10x = 320k … and #btc has a percentage of at least 10x tulips. Be patient and only #HODL. ”
12 years later, Bitcoin has already escaped speculative bubbles from both tulips and the South Sea company.
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The bitcoin price of $ 320,000 is beyond the very near term estimates of prices and price potential. In 2021, according to popular and accurate inventory-to-strength pricing models, an average of $ 100,000 or $ 288,000 per coin will be produced.
Even if the fabled tulip level has reached, Bitcoin has already been heralded as a revolution in money, and it certainly does a better job in the store than gold itself.
Bitcoin’s lack of adequate gold – and, of course, tulips – also allows it to function as a reliable store of value regardless of price rises or the number of people investing in it.
“It’s never too late for #Bitcoin, it will pump up forever,” Pierre Rochard, Bitcoin strategist at the major US-based Kraken Exchange, said Monday.