The famous macro investor suggested that Bitcoin (BTC) and cryptocurrencies have no similarities with the Tulip Mania.
10T Holdings Co-Founder Dan Tapeiro, In his post on February 15 He said that in terms of price compared to average income, Bitcoin and Ether (ETH) still have a long way to go before they become bubbles.
Bitcoin can’t compare to Tulip Mania
The Tulip Mania was the first speculative bubble in history that lasted only a few months in the Netherlands between 1636 and 1637.
At some point in the Tulip Mania, it is stated that half a kilo of tulip bulbs corresponds to 1,500 guldene, that is, the salary of a master carpenter for about four years. In the collapse that followed, tulip bulbs lost 90 percent value.
Opponents of Bitcoin often compare the bull cycles of cryptocurrencies to the Tulip Mania, suggesting that both asset classes have no “intrinsic value”, so speculation dominates the market.
Tapeiro, on the other hand, stated that the BTC / USD pair is not traded at ten times the price of an average salary in the US.
“There’s no madness yet,” Tapeiro summed up.
“During the Tulip Mania in the Netherlands, tulip bulbs were bought and sold at over ten times the average craftsman’s salary. The average salary of a skilled worker today is $ 32,000. If you multiply 32k by ten, it’s 320k dollars, and BTC has at least ten times the value in use compared to tulip bulbs. Be patient and keep up the savings. “
Bitcoin, which has been in our lives for twelve years, has become much more permanent than the Tulip Mania and the South Sea Company Balloon.