Yes, and the Dutch gov't also didn't outlaw tulip trading as a competing threat to their printing of the guilder, there were no futures trading on tulips either so people really couldn't short them.
as for limited supply, sure on bitcoin, but crypto overall is printing massive amounts of alternative currency, and that brings the big boy down too. check out AMZN's price in 2001 for details, same old amazon as it was in 1999, difference was by 2001 there were 500 imitators all clamoring for the same investment dollar.
As "white shoe" exchanges open up more currencies for legal trading by Wall St institutions, you can expect the volatility in bitcoin to decline, and eventually it will decline in price even tho it might be sound in terms of crypto-currency fundamentals.
You can see more of our analysis here: (we recommend starting with the article "Coinbase & BitFlyer's next move...")
https://steemit.com/@harpooninvestor