“Cryptocurrency investors should know that they are investing at their own risk. They also need to know that cryptos have no underlying asset, not even a tulip,” said Das, who is known as a critic of digital currencies such as bitcoins. He is concerned about money laundering, financing of terrorism with cryptos and cybersecurity around the digital coins. Recently, the Indian government announced that it will levy high taxes on crypto transactions.
During the Dutch tulip mania in the seventeenth century, the tulip bulb became extremely valuable as speculators drove up prices. After a sudden drop in prices, many tulip traders ran aground. That madness is seen as the first well-documented financial bubble in history.
The reference to the tulip mania when it comes to digital coins has been used more often in the past, such as by former president Nout Wellink of De Nederlandsche Bank (DNB), current chairperson Christine Lagarde of the European Central Bank (ECB) when she was still at the was headed by the International Monetary Fund (IMF) and Jamie Dimon, CEO of the major US bank JPMorgan Chase.