Friday, February 28, 2014

Commentary: Bitcoin mania worse than tulip craze - Xinhua | English.news.cn

Commentary: Bitcoin mania worse than tulip craze - Xinhua | English.news.cn:
Adding to the woes of global buyers, the chief executive of a Singapore-based trading website, First Meta, committed suicide for reasons not yet known.

"However, the mania around bitcoin looks even worse than the Dutch tulip bubble that peaked in 1637, when tulip bulb prices skyrocketed before suddenly collapsing.

The tulip speculation, although irrational, at least had a concrete target product with some value. In contrast, bitcoin may end up to be nothing but some digital symbols.

With no government, organization or person claiming to be responsible for its security, the much-hyped bitcoin is simply a test field for the Greater Fool Theory, in which a participant assumes he or she can sell it later to a "greater fool.""

It is about time for speculators to see through the illusions of bitcoin and refrain from falling into any potential money-making scheme set by others.

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