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Bitcoin Is Like American Revolution Currency, Says Alan Greenspan

Former US Federal Reserve chairman Alan Greenspan said that Bitcoin can be compared to that of the early form of money in the US called the “Continental currency” that was used during the American Revolution in the mid-18th century. The money was introduced in 1775 and became worthless by 1782.

In an interview with CNBC, Greenspan claimed that Bitcoin is irrational and will eventually suffer the same fate as the Continental currency, which was not supported by a commodity like gold during its time. He added that the war currency was still utilized to create “real goods and services,” even though it had no real value. He argued that that is the state of Bitcoin today.

“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.”

Phenomenal performance of Bitcoin

The criticism by Greenspan on the value of Bitcoin comes amidst the eye-popping upward trajectory of the price of the most famous virtual currency. The number one crypto has gained thousands of dollars in value in the past two days.

Based on the price index, Bitcoin price has reached a record price of more than $16,000 per token within the past 24 hours.

The phenomenal increase in the value of Bitcoin has compelled many respected personalities in the financial industry to claim that the Bitcoin market is a bubble. In his comment, JPMorgan CEO Jamie Dimon has criticized the number one cryptocurrency as a “fraud.”

“It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed.”

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Alan Greenspan Likens 'Irrational' Bitcoin to Civil 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.

Posted on

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.