The former chairman of the U.S. Federal Reserve, Alan Greenspan, recently told CNBC that he does not believe bitcoin holds any real value.
Talking with CNBC, Greenspan compared bitcoin to an early American form of money called “Continental currency” that was used in 1775 but had become worthless by 1782. The paper-based tender was used during the American Revolution but was not backed by a commodity such as gold.
Greenspan believes that bitcoin will suffer a similar fate, claiming that a “significant share” of Continental currency was still used to create “real goods and services,” despite having no true value.
“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.”
The reality is that no one knows exactly where bitcoin will end up, but to suggest that the US Dollar is still backed by gold or that it’s completely different from “Continental Currency” is a stretch.