Tulip mania, also known as tulip fever, refers to a period in the 17th century in the Netherlands when tulip bulbs became an incredibly valuable commodity, with prices rising to extreme levels. The craze for tulips was at its peak between 1636 and 1637.
During this time, tulip bulbs were bought and sold like stocks, with people investing large sums of money in the hopes of making a profit. The price of tulip bulbs skyrocketed, with some bulbs selling for the equivalent of tens of thousands of dollars in today’s currency.
The craze was fueled by a number of factors, including a new method of producing tulips that created more unique and striking color combinations, as well as the fact that tulips were relatively new to Europe and considered exotic.
However, the tulip market eventually collapsed, with prices dropping dramatically and many people losing their fortunes. The exact reasons for the collapse are not clear, but some factors that have been suggested include oversupply, market saturation, and a general loss of faith in the value of tulips.
Despite the negative outcome of the tulip mania, the episode has had a lasting impact on popular culture and economic history, and is often cited as an example of irrational exuberance and speculative bubbles.