Tesco
A Short History of Crypto Euphoria
Article

A Short History of Crypto Euphoria

An eminent economist’s taxonomy of bubbles is applied to the latest financial fad

Andreas Adriano
IMF, 2018
Read the article

Read or listen offline

áudio gerado automaticamente
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
áudio gerado automaticamente

Editorial Rating

8

Qualities

  • Eye Opening
  • Overview
  • Engaging

Recommendation

From Holland’s tulips in the 1630s to the global financial crisis of 2008, speculative investments that have gone bust share several features, identified by the late economist John Kenneth Galbraith in his 1990 book, A Short History of Financial Euphoria. The IMF’s Andreas Adriano pairs Galbraith’s wise pronouncements with the modern-day enthusiasm over cryptocurrencies. Through Galbraith, Adriano draws some thought-provoking parallels with previous bubbles. While never giving investment advice, getAbstract nonetheless recommends this engaging essay to fans of bitcoin and other virtual money.

Take-Aways

  • The late economist John Kenneth Galbraith’s insights can shed light on whether the precedents set by past financial bubbles foreshadow the future of bitcoin and other cryptocurrencies. 
  • Financial fads lead people to believe “that there is something new in the world.” Bitcoin supporters hail it as a revolutionary invention destined to “change the world.” 
  • In a “specious association of money and intelligence,” many bitcoin advocates, who have never experienced a financial crisis, believe that following in the footsteps of those who have made substantial sums will make them rich as well. 

About the Author

Andreas Adriano is a senior communications officer at the International Monetary Fund.

Comment on this summary or Iniciar a Discussão