Cryptocurrencies: Another Tulip mania?

The story is more difficult to sell than the SSC because it isn't immediately clear what cryptocurrencies are, let alone what they are supposed to do, and how

The cryptocurrency phenomenon has been compared to previous bubbles such as the Dutch Tulip Mania and the South Sea Bubble. Those bubbles occurred in the 17th and 18th centuries, in pre-technological societies at a time when the concept of market regulation did not exist. 

So the parallels are stretched. However, one thing has remained the same. That is, investor psychology. Once a critical mass of investors starts piling into a tradable instrument, rational assessment of value goes out of the window. The price goes crazy and price-momentum creates its own demand. More money chases that instrument and creates a feedback