When Bitcoin came screaming back into the public consciousness in late 2017, there was a lot of talk about whether or not Bitcoin is an economic bubble. The crypto currency flew under the radar for several years and then all of a sudden it skyrocketed in market value. But what goes up must come down and nowhere was this more evident than the Tulip Mania which inflamed Europe in the 1630s.
Seventeenth Century Amsterdam became a booming international port thanks to the Asian spice trade. Wealthy merchants made their home there and lived in grand mansions surrounded by beautiful flowers to demonstrate their wealth, and naturally they constantly wanted to one up each other. The favored flower became the tulip which came from the East and was considered incredibly exotic by contemporary standards. Their favor among the wealthy built up their worth until they were bought and sold at prices so astronomically above their intrinsic value they were as valuable as diamonds. When everyone finally got their head screwed on straight and realized this was absurd the tulip bubble burst and the rest is history.