Tags: greenspan | bitcoin | civil war | greenbacks

Greenspan Compares Bitcoin to 'Civil War Greenbacks'

(Saul Loeb/Getty Images)

By    |   Friday, 10 Nov 2017 09:09 AM

Former Federal Reserve Chairman Alan Greenspan doesn’t seem to impressed by the controversial digital currency some see as a fad and a sham.

He compared bitcoin to the currency issued by the Continental Congress after the American Revolution began.

 “Bitcoin is what used to be called fiat money,” he told Fox Business Network.

“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.

“Human nature is such that if you get something such as bitcoin, you think there is some value there whether there is or there isn’t. But that’s the same thing as a Continental, greenbacks in the Civil War, all of these currencies which didn’t have any backing,” he said.

Bitcoin dropped below $7,000 on Friday to trade more than 5 percent down on the day, having fallen by well over $1,000 since hitting an all-time high on Wednesday, Reuters reported.

Bitcoin dropped to $6,800 on the Luxembourg-based Bitstamp exchange by 1200 GMT, before recovering a little to $6,870 just over 20 minutes later.

On Wednesday around 1800 GMT, it had touched $7,888 after a software upgrade planned for next week that could have split the cryptocurrency in two was suspended.

As bitcoin fell, Bitcoin Cash - a clone of the original that was generated from another split on Aug.1 - surged, trading up as much as 35 percent on the day at around $850, according to industry website Coinmarketcap.

Despite losing almost 7 percent this week, bitcoin is still up more than 600 percent so far this year.

(Newsmax wire services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

   
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Former Federal Reserve Chairman Alan Greenspan doesn’t seem to impressed by the controversial digital currency some see as a fad and a sham.
greenspan, bitcoin, civil war, greenbacks
291
2017-09-10
Friday, 10 Nov 2017 09:09 AM
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