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.”