The cryptocurrency market trajectory is sometimes compared to the Dutch Tulip Mania. While fact-checking the speculative bubble of the 17th century, I realised that in 2007 a book was published by an American historian, Anne Goldgar, attempting to somewhat revise the earlier representation of that historic period popularised by Charles Mackay with his book from 1841.
One of Goldgar’s points is that the Tulip bubble was a much more confined event than originally presented by Mackay, with a limited slice of society speculating on tulip prices, the slice that would not be financially devastated in case of large losses. There appears to be a component not only of financial speculation but also of «luxury premium», in a way, where you may want to pay a high price for the status.
How much of the crypto market today is made of status-seeking purchases? How strongly do people feel that they need to join the crypto party for social peer pressure rather than for real financial gain prospect?
Of course all types of stories are constructed around large moves in the prices of tokens, from their value as an inflation hedge, or a hedge against a falling US dollar, or as a paradigm shift, etc., but sometimes it is worth looking inside and not only outside to find the real driver of a certain behavior.