Bitcoin Mania Setting Up for Greatest Financial Crash in 400 Years
While the first stocks originated in the early 1600s, speculation goes back to biblical times. The current mania in this price and time window is not a stock, however. It’s the currency, well cryptocurrency, known as bitcoin.
Not since the Great Tulip Mania in Holland, which ended in 1637, crashed 99% has there been such a blood bath. The stock market crash of 1929-1932 in the U.S. took 90% off the Dow Jones, a worthy rival of manic proportions. More recently, the Nikkei’s crash from 1989 to 2008 took 82%, but over nearly two decades. And no slouches, the various domestic indices that got their clocks cleaned from 2000 to 2002 maxed out around the Nasdaq’s 82%.
Yet, the greatest mania of not only our lifetime, but also perhaps of all time is that of bitcoin. Since being born in 2009, for around $0.005 (or a half of a cent), bitcoin has gained massive popularity in the last three years, and manic popularity in the last three months, after its price exploded through the late 2013 price peak. That “surprise peak” and near-90%, year-long crash was linked to the collapse of the Mt. Gox exchange.