Recent opinion pieces have revived the old comparison between bitcoin and tulip mania, pointing to the 17th-century speculative frenzy as a parallel for today’s crypto markets. But these comparisons miss the mark — and analyzing bitcoin solely as a store of value fundamentally overlooks what gives it meaning.
Bitcoin Is Not Digital Tulip Mania, Even If the NGU Narrative Momentarily Slows
While scanning major publications for daily bitcoin news, I came across yet another article likening bitcoin to the tulip craze, suggesting its value stems only from speculative fervor. These analyses reduce bitcoin to a singular investment thesis centered on store-of-value properties, ignoring its broader purpose.
True, from a strict “suitcoiner” perspective, bitcoin’s performance this year may feel underwhelming. October and November — typically stronger months for the asset — were not as impressive as expected.
But viewing bitcoin purely as “digital gold,” whose value derives solely from scarcity and long-term appreciation, is incomplete. It neglects the very foundation on which bitcoin was built.
Bitcoin’s Purpose Extends Beyond Its Price
Like money itself, bitcoin has multiple functions. Beyond being a store of value, it was designed from its earliest days to serve as a medium of exchange — a role that is often forgotten when the conversation fixates on market cycles and price targets.
In its 2008 whitepaper, Bitcoin was described as “a peer-to-peer electronic cash system”, one that enables transactions without relying on trust in financial intermediaries. That alone remains revolutionary.
Before Bitcoin, value transfer almost always required a trusted third party, and money issuance was controlled by central banks with very few exceptions. Bitcoin’s breakthrough wasn’t just engineered scarcity; it was the creation of a monetary network capable of moving value without centralized approval.
For many in the developed world, this capability may feel abstract or unnecessary. Payment services work, banks function, and financial access is relatively reliable. But for those living under sanctions, suffering from capital controls, or excluded from traditional banking, bitcoin’s permissionless design is nothing short of life-changing.
This Is Why Bitcoin Will Never Become “Digital Tulips”
Bitcoin is not a flower whose price once spiraled out of control and then collapsed into irrelevance. Even when growth slows, its intrinsic functionality — censorship-resistant, borderless value transfer — ensures it will never fit the tulip analogy.
Its utility is real. Its network effects are durable. And its technological foundation provides value far beyond speculation.
This is why bitcoin cannot — and will not — become digital tulip mania.
