This created an excess of paper currency that came to a painful end as banks began to demand repayment in specie, which led to the Panic of 1819. The panic and subsequent financial contraction led to plummeting land prices and a rash of bank failures. The economy suffered through a severe deflation and recession. Consumer prices dropped 11 percent between 1819 and 1821, and the price of cotton fell almost 60 percent over the same period.
Analogies to crypto - use of unproven currencies subject to flight to quality.
