Tweet of the Day: North Korea Building Bitcoin War Chest
This comes as no surprise. I wouldn’t be surprised that the DPRK is ‘mining’ it’s own bitcoins with its… https://t.co/TyOMNw5uKx
— tomcoyner (@tomcoyner) November 22, 2017
This comes as no surprise. I wouldn’t be surprised that the DPRK is ‘mining’ it’s own bitcoins with its… https://t.co/TyOMNw5uKx
— tomcoyner (@tomcoyner) November 22, 2017
OK, somebody who knows about this, please tell me what is the difference between Bitcoin and Tulips?
I’m down with crypto currency, but the history major that I am knows all about the Tulip bubble of 1637. A fiat currency, backed by nothing but the faith of the speculators is doomed.
Is North Korea about to end up with a bunch of 1s and 0s not even worth the paper they’re not printed on?
MTB, you may be a misinformed history major.
Our popular perception of the tulip bubble is due to that stupid book Extraordinary Popular Delusions and the Madness of Crowds… which confused two incidents and missed the point.
As I recall from economics, the real reason for the tulip bubble was that many financial services were restricted to who could use or supply them in Dutch society.
Because new varieties of tulips were very expensive, contracts for fractional interests were allowed by law to help the industry.
Average people exploited this loophole to access the financial market because these shares had advantages over money.
Due to high use as financial instruments, not intetest in tulips, demand went up and they became monetized… and decoupled from the actual value of underlying assets… with their value based on demand of money services rather than tulips.
Bitcoin did the same thing. It solves a lot of financial problems. The value of solving these problems is its underlying value… just as tulip bulbs were the underlying value of tulip contracts.
But Bitcoin’s value is no longer based on what problems it solves today… but what it may solve in the future… especially if governments try to stop or regulate it.
So… it may be like tulips… or not.
As the first cryptocurrency, it may be the one to stay due to public exposure… giving it more social value than fractional tulip contracts.
I think no question was answered here. Sorry.