Greenspan Likens 'Irrational' Bitcoin to Revolutionary War Currency

The former chairman of the U.S. Federal Reserve, Alan Greenspan, has joined the many financial luminaries to recently criticize bitcoin’s value.

Speaking to CNBC, Greenspan compared bitcoin to that of an early American form of money called “Continental currency” that came into use in 1775 and had become worthless by 1782. The paper-based legal tender was used at the time of the American Revolution and was not backed by a commodity such as gold.

Noting that bitcoin will likely suffer similar fate, Greenspan said that a “significant share” of  Continental currency was still used to create “real goods and services,” even though it had no ultimate worth.

He continued:

“Bitcoin is really a fascinating example of how human beings create value, and is not always rational … It is not a rational currency in that case.”

Greenspan’s comments come as the value of a bitcoin is soaring beyond most expectations, having gained thousands of dollars in value in the last two days. At press time, a bitcoin is worth over $15,000, according to the CoinDesk Bitcoin Price Index.

The meteoric gains have prompted many figures in the financial industry to speak out, calling the bitcoin market a bubble. JPMorgan CEO Jamie Dimon even went so far as to call the largest cryptocurrency by total market value a “fraud.”

Alan Greenspan image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Comments

comments

Filed in: Bitcoin Buzz Tags: ,

You might like:

Huobi Exchange’s Plans for Russia Go Well Beyond Crypto Trading Huobi Exchange’s Plans for Russia Go Well Beyond Crypto Trading
Deloitte Blockchain Chief: Bad Crypto Headlines Making Clients ‘Nervous’ Deloitte Blockchain Chief: Bad Crypto Headlines Making Clients ‘Nervous’
Deloitte Blockchain Chief: Bad Crypto Headlines Are Making Clients ‘Nervous’ Deloitte Blockchain Chief: Bad Crypto Headlines Are Making Clients ‘Nervous’
Tutorial: How to Use CoinDesk’s Crypto-Economics Explorer Tutorial: How to Use CoinDesk’s Crypto-Economics Explorer
Stablecoin Purchases Surged Amid Wednesday’s Crypto Market Drop Stablecoin Purchases Surged Amid Wednesday’s Crypto Market Drop
After Friday’s SEC Actions, Experts Say ICO Party ‘Is Truly Over’ After Friday’s SEC Actions, Experts Say ICO Party ‘Is Truly Over’
SEC Settles Securities Registration Charges Against 2 ICO Startups SEC Settles Securities Registration Charges Against 2 ICO Startups
Crypto Job Interest ‘Still Strong’ Despite Decline, Says Indeed Crypto Job Interest ‘Still Strong’ Despite Decline, Says Indeed
© 7878 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.