The problem with tulips wasn’t just that supply was constrained…
The tulip mania was based on tulip futures purchased in November/Decmeber for delivery of tulips before the spring; so it was actually speculation on futures markets based on a run-up in prices. Then, in February/March, the prices collapsed when bulbs became available.
if everyone had been able to grow a few tulips, the few tulip growers who had tulips bulbs in the fall wouldn’t have been able to command such high prices.
Also, if tulips were being mined (created) at a predictable pace, there would be no spike in supply, and the market would not have collapsed.
Thank you for your reply, also came across this article from my neighbouring country, Austria. It’s about Bitcoin, but the question applies to Bitcoin Gold too.
The story is that they scammed some 10,000 people through a ponzi scheme based on the blockchain, so here’s how I see things:
This ponzi scheme is just ONE USE CASE people exploited. Anyone could do this using anything else trending. The blockchain is safe!
Are there still people who belive the ultimate purpose of Bitcoin Gold is to scam?
Ponzi schemes are named for Charles Ponzi, a scammer in the 1920’s. His scheme did not use cryptos.
Just a few years ago, Bernie Madoff made the news with his Ponzi Scheme, the biggest in history… Which bilked people of Tens of Billions of dollars. This scheme used dollars. Does that mean dollars should be abandoned?
Bitcoin began in 2009… Inspired, in large part, by the financial collapse and the Madoff scheme! On the blockchain, ownership is transparent, so this sort of fraud is harder to hide.
I understand, but this is what happens in my country:
You know, most people on the internet read “crypto” , “10,000 people lost” , “$$$ in the millions”, "ponzi"
and it freaks them out, they’re really scared to aproach this crypto-space.
But really, if anyone reads through this forum alone, it’s kind of got everything they would need covered and well structured.
But people are extremly sensitive and sceptic about the word “bitcoin”.
So in about 50 years we’ll look back and say: money… what a f**king thousands year old nightmare. Oh boy!