Tuesday, 23 May 2017

Tulips, Myths, and Cryptocurrencies – Stratechery by Ben Thompson

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Mackay was right that there were insanely high prices: those prices, though, were for options... that October crash was in-fact a financial disaster for many, including some public officials who had bought tulip futures on a speculative basis;"

Tulips, Myths, and Cryptocurrencies – Stratechery by Ben Thompson

This is correct. But as I point out in my book "Before Babylon, Beyond Bitcoin", while the tulip bubble wasn't what people think it was, "the well-known crisis caused by tulip mania led to regulated derivatives markets". The solution to the problem wasn't to ban derivatives, but to regulate them.

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