On February of 1637, the era of the Dutch Golden Age, the world recorded one of its first experiences with speculative bubbles. This is widely known in finance circles as 'tulip mania.' The specifics and accuracy about the Tulip craze are debated among academics. What we know is that at one point, people were paying a lot for tulips and seemingly overnight the prices of tulips imploded. Regardless of the specifics, the Tulip Craze has become a symbol of the phenomena of price collapse within markets.
With the recent run-up in Bitcoin prices, one can't help but wonder if we will experience a similar price collapse in Bitcoin. This weekend the price of a Bitcoin passed the $4,000 mark, a staggering 300 fold increase over the last five years. Bitcoin is the most widely used cryptocurrency, but is one of hundreds that are now becoming available. The question we are all asking in finance circles is, will Bitcoin become the next bubble or is it here to stay? One thing is for sure, cryptocurrencies are the way of the future, the question is which one will last...will Bitcoin become the AOL of the internet boom or the Google?