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Just as JP Morgan CEO, Jamie Dimon, did a couple months ago, UBS chief economist compared Bitcoin to the Tulip mania in the Netherlands in the XVII century.

Usually considered the very first recorded speculative bubble ever, the term “tulip mania” is now often used to refer to any large economic bubble when asset prices deviate from intrinsic values.

Using his Twitter account, UBS global chief economist, Paul Donovan, said:

“Amsterdam 1636. Cash-settled futures markets in tulip bulbs start. Prices soar. Amsterdam February 1637. Tulip bubble bursts #beenherebefore.”

Even though he compared the most famous digital currency to the tulip mania, he also stated he is a “big fan of blockchain”. In a different tweet, Donovan said UBS thinks of blockchain as a system that should continue to grow.

Donovan made this statement right after CME Group announced its intention to list a bitcoin futures contract by the end of the year.

Paul Donovan joined UBS Phillips and Drew in 1992, as the investment banking arm of UBS was then known. Three years later, in 1995 he moved to be global economist. He was appointed Global Chief Economist of UBS Wealth Management in June 2016.

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