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Wednesday, 15 November 2017

BitCoin News: Former Fed Chairman;Bitcoin Is Like World's Unbacked Fiat Currency

Alan Greenspan; Former Federal Reserve Chairman has given his views on crypto-currency Bitcoin.

He likened the cryptocurrency to the world's unbacked fiat currencies.
 Alan Greenspan said “Bitcoin is What Used to be Called Fiat

Greenspan explains that this is because the decentralised currency isn't backed by any traditional commodity.

"I would use the analogy of Continental currency.
Continental currency in 1775 was issued with no
backing, and it sold at par in the marketplace for
quite a while until they started to build up more
and more printing of continentals,” he said.

Even though Greenspan is mainly known for managing the Federal Reserves, his economic opinions have always been respected. This is likely due to his financial background and his relationship with Ayn Rand
The Two Former Federal Reserve Chairs; Alan
And Bernanke 

This though,  isn't Greenspan's first comment on Bitcoin. Back in December 2013, he said Bitcoin was "not a currency".

He said four years ago,
“It [bitcoin] 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,”

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