In many parts of the world, the so-called cryptocurrencies have been met with wild enthusiasm and broad acceptance. Conversely, most financial leadership in India, particularly at the official levels, are sharply opposed to the entire field and are almost universally warning that the “bubble” will burst soon. Commentary by Jimeet Modi, CEO, Samco Securities
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One such epitome of market stress occurred in 1634-1637, called The Dutch Tulip mania. Till now, it stands as the decisive example of insanity and irrationality that materializes in the asset market. At the time of the tulip speculation, the Netherlands was a highly commercialised country with innovative financial markets.
Its participation in innumerable risky ventures had proven so successful that the era was considered the golden age of the Netherlands. During that time, non-professionals and novices entered the tulip trade in large numbers.
Currently, the same is being witnessed in the bitcoin market. A rising demand for tulip bulbs in France apparently drove the speculation. Soon enough, individual tulip bulb prices reached enormous levels. People from all classes hurriedly liquidated other assets to participate in the tulip market… […] https://economictimes.indiatimes.com/m ... /articleshow/62351194.cms
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