December 6, 2013
Yesterday, December 4th 2013, Alan Greenspan (ex-Fed Reserve Chairman) told media that I guess Bitcoin is a bubble. The question is I do not understand where the backing of Bitcoin is coming from… Individuals with very high net worth and who have great reputations could create their own currency because people would be willing to exchange their checks with others probably at par. That is not the case with Bitcoin.
When he was asked whether Bitcoin could be the new Gold, Greenspan’s reply was No. Well, see that – it has to – it has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of bitcoin is. I haven’t been able to do it. Maybe somebody else can. But if – you asked me is this a bubble in bitcoin. Yeah, it’s a bubble.
Bitcoin value going through the roof might give an impression of a bubble, but there is lot to know about Bitcoin before judging it: