Paul Donovan, the chief economist for financial services giant USB tweets against Bitcoin. In which he compares bitcoin to the 1637’s tulip crisis of Netherland, PetSmart and the Weimar Republic’s hyperinflation.
Particularly, his comments came after resulting CME Group revealed bitcoin contract futures this years.
Donovan’s objection to bitcoin came from the tulip referent:
“Amsterdam 1636. Cash-settled futures markets in tulip bulbs start. Prices soar. Amsterdam February 1637. Tulip bubble bursts #beenherebefore”.
But still, Donovan states in a follow-up tweet that there is dissimilarities in economic impact. Therefore, in an email, he says that the idea of not delivering a product was “shocking”. Since, people choose and traded tulip bulbs in taverns likely in today’s cryptocurrency exchanges.
Furthermore, he says that he was fond of blockchain while he opposes cryptocurrencies. In another tweet he mentions that blockchain as a platform must sustain to grow.
Significantly, Paul Donovan is not first to compare bitcoins to the tulip crisis. However, JP Morgan Chase CEO Jamie Dimon notoriously called the “bitcoin a fraud”.
Image Source: Paul Donovan