Bitcoin (BTC) and cryptocurrencies expect nix like the tulip mania of the 17th century, even after their rapid gains, one macro investor says.

In a tweet on Monday, Dan Tapeiro, co-founder of 10T Holdings, argued that in terms of toll relative to average income, Bitcoin and Ether (ETH) still have a long mode to go before challenging tulips.

Bitcoin vs. tulips: At that place's no comparing

Tulip mania was a brief simply intense speculative bubble in what is at present the Netherlands that lasted simply a thing of months between belatedly 1636 and February 1637.

While just impacting a tiny section of the economic system, at its height a single pound of bulbs cost a reported 1,500 guilders — roughly equivalent to 4 years' salary for a skilled carpenter. The implosion, which had unknown origins, caused a 90% toll drop.

Bitcoin naysayers often compare balderdash runs in the cryptocurrency to tulip mania, arguing that the  "intrinsic value" of the two avails is essentially all merely absent and speculation rules the market.

In terms of raw numbers, however, BTC/USD hardly trades at 10 times the average salary in the Usa, Tapeiro says.

"No mania in #bitcoin yet," he summarized.

"During Dutch tulip craze, tulips traded 10x the avg 'artisans' salary. Avg bacon for 'skilled laborer' today is 32k approx. 32k × 10x= 320k ...and #btc has at least some other 10x utility value of tulips. Exist patient and just #HODL."

12 years on, Bitcoin has already outlasted the speculative bubbles of both tulips and the South Ocean Visitor.

Bitcoin vs. tulip mania and other bubbles. Source: James Todaro/Blocktown Capital letter

Spotlight on fixed supply

A $320,000 price for Bitcoin lies beyond most estimates of well-nigh- and mid-term price potential. 2021, according to the popular, hitherto authentic stock-to-flow-based price models, should produce an average of either $100,000 or $288,000 per coin.

Even if the mythical tulip level should hit, Bitcoin is already heralded as a revolution in money, arguably meliorate at performing the job of a store of value than gold itself.

Bitcoin's scarcity versus aureate — and of course, tulips — likewise allows it to role as a solid shop of value regardless of how high its price becomes and how many people invest in it.

Bitcoin inflation, stock-to-flow ratio and BTC/USD. Source: Woobull.com

"There'south no such matter as being 'too tardily' to #bitcoin, it'due south going to pump forever," Pierre Rochard, Bitcoin strategist at major U.Due south. commutation Kraken, said on Monday.

"Why? Because fifty-fifty at 100% adoption (currently
BTC and ETH yr-to-engagement performance. Source: Digital Avails Data

At the fourth dimension of writing, BTC/USD is already upward 62% this year, while ETH/USD is up 144%.