Forget the Dutch tulip mania of the 1630s, this is now the real thing, almost 400 years later. Or at least it is the real thing, according to Bitpanda.
During the Dutch Golden age, the contract prices of new, fashionable tulips rose to feverish heights. People were head over heels in a race to buy tulip bulbs. The race ended dramatically in February 1637, bursting one of the biggest bubbles of that era.
Bitpanda and the Tulip
Bitpanda aims to do things very differently, to make this a success this time around. According to the official press release,
One of our goals is to give our users access to the most innovative and exciting investment options. We recently introduced stablecoins as a new asset class and added Tether (USDT) and USD Coin (USDC) on Bitpanda.
One of these assets is the option to trade tulip bulbs. It started yesterday, on April 1st, 2019. You now own a beautiful digital version of the tulip on your Bitpanda wallet.
“Growing” the Tulips
According to Bitpanda’s blog, the crypto broker was inspired by the words of ‘smart people’ like Nouriel Roubini. Mr. Roubini is famous in crypto and blockchain circles for being one of the biggest skeptics out there, regarding the future of crypto. He famously likened Bitcoin to the Tulip Mania. Whenever he got the chance, he would make ominous predictions about how the ‘bubble’ would burst one day.
Another source of inspiration was from the Dutch Central Bank itself. In 2013, the then president of the Bank said that Bitcoin was worse than the Tulip Mania. Whereas there were actual tulips to be gained in exchange for investor’s money, with Bitcoin, there was nothing to be had, according to the president.
Bitpanda aims to ‘grow the tulips’, as a new, attractive asset class. The blog states that investors can buy shares of these tulips. It will keep the money secure, in cold storage. Investors need not worry but leave all the work to Bitpanda Gardeners.
Valuable, because they are Difficult to Grow
Tulips are a valuable asset class. This is because they are ridiculously difficult to grow in most climates. Some viral infections cause the flowers to change colors. Bitpanda writes:
… After a great deal of market research, we’ve [realized] that tulips are actually more interesting than cryptocurrencies as an asset (and more fragrant, too).
You can get your shares of digital tulips here.
Do you think Bitpanda is onto a valuable asset class? Let us know in the comments section below!