Bitcoin has stirred comparison of itself to the 1637 “Tulip Mania” that saw tulip bulbs’ values rise to 10 times the annual salary of a skilled Dutch craftsman. But, really, is the tulip mania starting or is it ending? Perhaps the real mania was that “central planners” could be entrusted with the God-like capabilities to create money out of thin air and not abuse the power!
From the time the US Federal Reserve Bank was created in 1913 until now the Federal reserve Note (mistakenly commonly referred to as “the dollar) has lost 95% of it’s value. It originally started as a promise to pay a dollar (that is what the term “note” means) but so many of them never were returned for redemption that they attained a perception of value of their own (a mania?). That perception/mania grew until finally, in 1971, Richard Nixon was able to successfully completely remove even the remotest semblance of a promise to pay anything from the note. That demonstrates the governments’ backing of the mania and its own interests in maintaining the mania. Since that time the mania maintains that a piece of paper, a promise to pay nothing, is “a dollar”. There was never any legislative act causing what was once a “note” to replace what was Constitutionally created as the nation’s money (which is the dollar).
Since this debasement mania has flourished for so long practically every contract in existance is using a maniac expression (a dollar) in a place where it really means “a Federal Reserve Note”. In other words, lenders lend Federal Reserve Notes but in fact say they want to be repaid in “dollars”. The US Mint does still mint sell dollars for the price of, get this, about $25 Federal Reserve Notes. Obviously a Federal Reserve Note is NOT a dollar! Having signed a promise to pay back “dollars” a borrower could be technically on the hook for roughly 25 times that value if they were held to the strict terms of the contract (i.e to pay DOLLARS). Or, on the other hand, perhaps every single contract demoninated in “dollars” is void or voidable because they don’t include an essential ingredient of a contract, namely, a “meeting of the minds”. Therefore, institutions such as taxing authorities, banks, insurance companies, Congress etc along with prominent leaders such as bankers, lawyers and politicians are also under the influence of the same mania or are exploiting it for their own profit.
So if this assessment of current reality is true, the sudden and huge rise in Bitcoin’s price isn’t a re-enactment of the Tulip Mania but an awakening and escape of a previous one that still has a large number of persons all around the globe under it’s maniacal influence. It would be an awakening similar to the realization that the king, does indeed, have no clothes and everyone is running around red faced not only at their own folly but at the folly they exhibited as a group.