1636 Tulip Mania, GameStop, Crypto & Social Media

Falling in the Liquidity Trap

Some transactions even needed to be done at a notary. Some people called this trading activity “wind trading” since there were no real bulbs behind it, so no real value. In 1636, people started to speculate on non-infected tulips. The more popular tulips grew, the more people were willing to pay the price, and at this time the best way to inform people was through newspapers. This is the core of the problem when it comes to feeding and growing an economic bubble. People can’t escape fear of missing out (FOMO), particularly when people already made money with it.

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Adam Rida

Adam Rida

2 Followers

Engineering student in Applied mathematics and Data Science