Modern Tulip Mania
(Photo by FriendlyMoose)
Almost two weeks ago I had a stroke of luck with a blockchain game I had been playing for a while. There was a sudden hype around the game Alien World which caused the in-game NFT’s and currency to skyrocket. The prizes people were paying were really ridiculous.
I’ve profited quite well from this by selling some tools and all of my tokens.
Last week I visited the famous Dutch flower fields to take some photographs when I remembered a story I once read. I thought the story had quite some similarities with the events that happened two weeks ago.
Dutch Tulip mania
In the Golden Age (17th century) the Netherlands was already famous for it’s fashionable tulips. Dutch tulip bulbs were in great demand. Requests for the bulbs came from all over Europe. There was such a great demand that the prices of the tulip bulbs reached extraordinarily high levels. At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled artisan.
In 1635 40 tulip bulbs were sold for 100.000 Dutch guilders. At that time you could buy multiple canal houses in Amsterdam for that. The most famous bulb was the Semper Augustus. A single bulb of this tulip was sold for 6000 guilders.
And then the inevitable happened. On Tuesday 3, 1637 the value of the tulip bulbs collapsed.
There was a huge chaos; merchants were fighting over the validity of the contracts and it appeared that a lot of florists had sold tulips they didn’t even have to buyers that couldn’t even afford them.
A lot of investors were ruined by the sudden fall in prices.
The Tulip mania is generally considered to have been the first speculative bubble in history.
Now back to Alien World. As I mentioned in the beginning the NFT's were highly overpriced during the craziness. After a few days the value already decreased significantly. A lot of people profited from this. I read a couple of other Lions made nice profits too.
But where there are winners, there are losers too. There must be a lot of people that lost money. So always be careful when there is a hype because you can win, but certainly also loose serious money.
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NFT's of my photos are on wax.atomichub.io
I'm crypto and security enthousiast with a passion for photography that likes to play games.
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