Many people who are ignorant about the future of fintech compare cryptocurrencies like Bitcoin to the tulip bubble that emerged in the 17th century. However, with advancing technology, decentralized networks will provide several advantages over conventional methods in the long run. Considering this situation, it would not be right to compare BTC with Tulipmania.
What is Tulipmania?
This was a market bubble that happened in the 17th century when the price of tulip flower bulbs was increased in an unnatural way. It was due to the speculation by Dutch investors, and to everyone’s surprise, the tulip bulbs became the most expensive item in the entire world during that period.
After that, the price of tulip bulbs crashed, which resulted in huge turmoil for several traders and investors. However, when we compare the situation at present with regard to cryptocurrencies, there is a lot of transparency in the market. Not only that, Bitcoin has survived several market falls in the last few years, and the price has been steadily moving above $50000 for many months.
Blockchain and the dot-com bubble
Several critics of the blockchain and crypto industry also compare them with the dot-com bubble in the tech industry. Even though this comparison is somewhat justified when it comes to some crypto assets, analysts feel that the market is yet to enter a bubble stage.
The new generation of investors is better informed about the market activities. As information is freely available regarding various crypto assets, investors can now make informed decisions and limit their losses in the long run. Considering this situation, the future for the crypto industry looks bright. As long as the investments are made through proper channels, there is no need to worry about crypto assets. Several governments are also promoting the use of cryptocurrencies in recent years, which show the confidence they have in blockchain technology.