author

Tulip Mania: The First Economic Bubble

  • It was started in 1593 when Tulip became popular in Netherlands
  • Tulip nature: It takes 10 years to grow first seed (bulb) to Tulip flower and you can't pull them out and move place to place
  • After first 10 years: bulb lot grows as flower for three months in year between March -May. In 17th century it became symbol of wealth & success
  • Now, by infecting a virus in bulb you can raise very rare Tulip (Mosaic Tulip). Like showed in above picture
  • Mosaic Tulip was very rare and its demand increased fast
  • Pull it out from earth would kill it, so future sell of bulb was made for when it will be ready
  • Demand increased so did the prices, more and more people was buying Tulip futures for resell it and earn profit
  • Of course there was a limit to pay more money for actually owning the flower
  • So now there is no buyers, we have an economical bubble
  • Flower market collapsed in February 1637

Don't forget to share this pointer!

View more comments +