Bitcoin Bubble Worse Than The Tulip Bubble? Ha!

If I had a satoshi for every time I've heard a reference to the Tulip Bubble, I'd have enough for a whole Bitcoin... - @futuristgear

In the news today, there was a fresh bit of FUD from a Wall St incumbent.

Today's source?

Jamie Dimon, CEO of JP Morgan, here he is here:

He is quoted as saying the following:

"It's worse than tulip bulbs. It won't end well. Someone is going to get killed."

Really? That's rather troubling to hear!

(Except it's not, it's pure FUD).

But wait, there's more! He also said the following:

Dimon later added that the cryptocurrency "will blow up", according to CNBC. It was also during that appearance that said that he would terminate any trader that he found to be trading bitcoin for being "stupid".

If by "blow up" what he means is take off, or that it will create massive shockwaves that will be felt the world over, then maybe he's right.

But! - Considering the previous comment - I'm guessing he means like what happened during the 2008 financial crisis. You know? The one that occurred while he was CEO of a company that need to be bailed out after a real bubble burst.

This article may help you refresh your memory on that one

Apparently this guy's claim to fame is "cutting comments", so maybe we should expect nothing less from him?

He certainly won't be cutting his bonuses any time soon though, you can be sure of that!

Ye Doth Protest Too Much...

Ever heard that old expression? Because that is what it sounds like this Dimon fella is doing to me.

Overcompensating, or perhaps even panicking?

That, or he could be suffering from cognitive dissonance.

Whichever one it is, I'm not going to be taking this guy's advice to heart. Are you?

You can view the article about Mr Dimon's comments here: https://www.coindesk.com/jamie-dimon-bitcoin-fraud/

This bubble talk is really starting to fester, so let's touch on it briefly...

Tulip Bubble / Bitcoin Bubble

The one major thing these FUD flingers seem to have in common is a basic misunderstanding of where Bitcoin and Tulips differ.

Most of you know this, but it's worth repeating for anyone new to this space:

---

• Bitcoin has a limited/controlled supply, and only so many can be made.

Vs.

• You can grow as many Tulips as you damn well please.

---

That is only one example.

I won't get into the "bubble" thing much deeper here, because this article(also posted today) does a far better job of explaining it than I ever could. This is the key comment for me:

" when economics and the network effect intermingle, you have a recipe for explosive growth within an asset. Bitcoin is not some new version of the 17th century tulip bulb. It is a groundbreaking advancement in accounting and money."

I couldn't agree more!

Final Thought

I said about protesting too much, and I don't want to be like Mr Dimon, so I will say this:

Please also check out the comments of that Coin Desk article because there are some fantastic arguments going on in the comments section.

I'm still learning everything and anything I can about blockchain, bitcoin and as many of the other cryptos as I can.

But I'm not an economist...

Maybe I'm wearing my own set of Rose tinted spectacles?

Let me know what you think in the comments.

Thanks for viewing!