The special transaction form of tulip also contributed to the formation of tulip economic bubble.
At the end of 1634, Dutch tulip merchants formed an organization (college) similar to the industrial guild, which basically controlled the tulip trading market. The guild stipulates that any tulip business must pay fees to the guild. Each Dutch guilder contract is handed over to the guild at 1/40. The cost of each contract shall not exceed 3 guilders at most. Because these guilds usually trade tulips in pubs, the fees they charge are usually called "drinks".
At the end of 1636, the Dutch tulip market not only bought and sold tulip bulbs that had been harvested, but also bought and sold bulbs that would be harvested in advance of 1637. There are no clear rules in this futures market, and there are no specific constraints on buyers and sellers. Tulip contracts are easy to buy and sell. In a very short time, they changed hands several times, buying short and selling short. Pass the package. In the process of changing hands many times, the price of tulips has been rising. In February of 1637, profiteers gradually realized that it was time to deliver tulips. Once the bulbs of tulips are planted in the ground, it is difficult to sell them again. People began to wonder how much tulip bulbs bought at such a high price could be worth just for flowering. Not long ago, the rare commodity tulip contract suddenly became a hot potato. People who hold tulip contracts would rather have less than throw them to others. After people's confidence was shaken, the price of tulips immediately began to fall. The price drop leads to further loss of confidence in the tulip market, and the vicious circle leads to the collapse of the tulip market. In the end, roses replaced tulips.