Of Bitcoin and bulbs

We all know about the Netherlands and the “tulip mania” that consumed the Dutch people starting in the early 1700’s when merchants from the Ottoman Empire introduced the tulip to the Dutch from the in the mid-1500's, the flower became popular because it tolerated the region’s harsh climate conditions. The Netherlands became a prime location for growers and sellers of the seeds and bulbs. Over time, the tulip became a luxury item to leading to increased demand. This demand for tulips benefited the Dutch East India Company, which at one point generated a profit of 400% on the tulips alone.

Everyone and their mama have compared tulips to Bitcoin at one point. This article attempts to outline the profound effect Bitcoin will have on the world economy as a whole even if it goes the way of the tulips. To show how Bitcoin’s impact will be groundbreaking for decades, even if we assume a worst case scenario from this point.

So the tulip mania tale warns us to not get caught in a market bubble. At the peak of the tulip mania, some single tulip bulbs – especially the coveted Semper Augustus – sold for more than 10 times the annual income of a skilled craft worker. Still tulip mania left desolation to investors across such a wide base swiftly.

Today the floral industry is big business at $7 billion annually. In the United States alone America’s floral industry of over 32,000 businesses employs about 75,000 Americans. However the small country of the Netherlands To this day dominates this market around the world providing half of all the worlds’ flowers, and yes 80% of the world’s tulip bulbs. In fact tulips can make up about 10% of the country’s GDP.

Just to make things absolutely clear I am in no way comparing Bitcoin and their derivatives to tulips. What I am hoping to illustrate is just how profound Bitcoins footprint on the future shape of commerce will be.

Even in if its worst case scenario plays out.

BTC looks bleak

Now about BTC and its current short term outlook I draw your eyes to our first chart a daily candlestick chart of BTC. The lines drawn in blue start from the highs of May 5^th and extended through to the highs and lows of June 4^th. Easily noticed is how the widening downward channel has contained every close since June 4^th. The fact that we broke solidly below the 50-day moving average indicates that pricing will continue in its current direction and could have already seen the all-time highs for this year, at best and most likely is after this correction that could take us as low as $6,500 we will remain sideways possibly until 2021 before seeing any explosive growth past $10,000.