Bitcoin, bitcoin, bitcoin, it’s all everyone seems to be talking about these days. But what is it exactly? Is it the currency of the future, or just a newfangled internet scam?
At face value, the bitcoin doesn’t seem to make much sense. It is an open source, bank-free, non-physical currency with a pretty hefty value. Now, the fortunes of the world are ever changing and we can draw an example from a very interesting boom in trading about 400 years ago in Amsterdam. The tulip was introduced in 1593 and once the people got their hands on them they couldn’t get enough. I know what you’re thinking, what’s the big deal about some flowers? The tulip was rare and exotic for the people of Amsterdam and it’s impossible to comprehend “tulip mania” without understanding just how different tulips were from every other flower known to horticulturists in the 17th century.
The tulip business became an incredible source of income and they even began trading them on the Amsterdam stock market. The cost of a Semper Augustus (the most expensive tulip on the market) ran the same price range as a luxurious home in the heart of Amsterdam. There was a point when the demand for and the cost of tulips became so high that they virtually became the currency of the time.
So enough about flower, back to bitcoin. As internet access all over the world grows and permeates, so will the bitcoin; it is a self fueling machine. There is no way to predict the ultimate future of the bitcoin, but it seems to be our 2014’s tulip mania.
Want to hear more about the future of bitcoin and the rapidly changing fortunes of the world? Take a look at this infographic and let us know what you think in the comments. Don’t forget to like and share.