December 13, 2017 (The Ferowich Report) — A new chart produced by former hedge fund analysts at Bridgewater suggests bitcoin, the world’s first cryptocurrency, has surpassed “bubble” levels only seen during the insane 1637 Dutch tulip valuations—yet other analysts say the analogy is off the mark.

The analysts, Howard Wang and Robert Wu, comparing bitcoin’s meteoric rise to the tulip bubble contend that since bitcoin’s price is now 64 times its starting price, the “bubble” is larger than the tulip bubble when prices where 50 times their original price.

Writing in a Coindesk column, investor and author Chris Burniske contends that the bitcoin to tulip mania comparison is a “baby boomer bias,” referring to the generation born following World War Two.

“This is worse than tulip mania … at least then, you got a tulip, now you get nothing,” Burniske quotes Nout Welling, former president of the Dutch Central Bank, as saying.

Nout displays a type of anti-crypto asset bias many baby boomers suffer from: if these things have no physical form, how could they possibly have value,” Burniske states. But simultaneously, “the market caps of Twitter, Facebook and Google are largely based on 100 percent digital services – certainly, those services produce cash flows, but cash is paid in exchange for a digital service, implying a purely digital service can have value,” writes Burniske, partner at Placeholder Venture Capital.

“Tulips are not durable, not scarce, not programmable, not fungible, not verifiable, not divisible, and hard to transfer,” Twitter denizen @naval said December 8, “but tell me more about your analogy.” By contrast, cryptocurrencies such as bitcoin and ethereum possess each of these characteristics.

As of early Wednesday afternoon, one bitcoin ran about $16,530.20, according to CoinMarketCap data, whereas it started the year trading around $1,000.

“Bitcoin is one of the few markets we’ve ever had in history where you’ve seen these astronomical gains around the world and retail investors in Asia are the ones driving it,” the Wall Street Journal reported December 12, noting that “by the end of November, Japan, South Korea, and Vietnam accounted for nearly 80 percent of bitcoin trading activity globally.”

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