We are talking about the "
Tulip mania" and
tulip futures. By the end of the 16th century, tulips had become a luxury item in Europe, especially in the Netherlands, where people learned how to grow them in cold climate. Prices and demand for tulip bulbs began to rise exponentially. Contracts to buy bulbs became popular in Holland.
Around 1634, traders joined the game and created a formal futures market where contracts to buy bulbs were bought and sold. In February 1637, it became clear that florists would not be able to increase the supply of new bulbs. No more buyers wanted to buy futures, and the economic bubble burst. Over time, bulb prices returned to their previous level, but the mania has passed, and tulips gradually became cheaper.
