IS BITCOIN THE BLACK TULIP OF THE 21ST CENTURY?

Authors

  • Abigirl Ncube Department of Finance and Investment Management, University of Johannesburg, South Africa
  • Taryn Neuhaus Department of Finance and Investment Management, University of Johannesburg, Corner Kingsway & University Road, Auckland Park, 2092, South Africa.

Keywords:

bitcoin, blockchain, boom, bubble, burst, cryptocurrency, tulipmania

Abstract

This study examined the literature longitudinally to determine if the correlation between Bitcoin and tulip hysteria is valid. The study's findings indicate that Bitcoin has gradually separated itself from the tulip frenzy. As an electronic payment system and investment instrument, it has integrated itself into the modern financial system, unlike the tulip mania, a strictly speculative bubble with limited utility. Bitcoin's price may resemble the tulip hysteria and other bubbles, but its exploratory price pattern is characteristic of disruptive technologies.

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Published

2023-06-24

Issue

Vol. 15 No. 2 (2023): International Journal of Economics and Financial Studies

Section

Original Article