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  • Greenspan Says Bitcoin a Bubble Without Intrinsic Currency Value

    From bloomberg.com

    Former Federal Reserve Chairman Alan Greenspan said Bitcoin prices are unsustainably high after surging 89-fold in a year and that the virtual money isn’t currency. “It’s a bubble,” Greenspan, 87, said today in a Bloomberg Television interview from Washington. “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.” Bitcoins, which exist as software and aren’t regulated by any country or banking authority, surged to a record $1,124.76 on Nov. 30. The currency has rallied on ... (full story)

Ha HA! It's fiat Al, just like the paper all you central bankers are foisting off on people with the b.s. that "full faith and credit" of broken economies has some intrinsic value. Bitcoin is digitally manufactured from no value, just like yen, dollars, euros, francs and whatall's. You click your mouse and instantly, some slavo's owe real productivity for the digital product (nothing) you provided. Don't bag on a competing, clicked into existence from thin air, fiat, just because you don't control it. The relationship is rather obvious.
Well he is an expert on bubbles... and as a purveyor of fiat, also clearly an expert on intrinsic value.
I have been wondering about the same.

While it is growing and I wish I had got some a while ago, I am not sure what drives the growth fundamentally.

With traditional currencies we got money flows from economy to economy, relative performance of one economy against another, reserves, etc.

There is obviously inflow of money into bitcoin, but no clarity what drives it besides the expectation that it will be more expensive tomorrow. There is not economy behind it. It is not a basket.

It got to experience deflation with goods costing fewer coins each week or day. Most of these goods are produced in non-bitcoin currency environment.
So he'll talk about bitcoin but not equities? Bitcoin is like gold... you just trade it. It by itself has no value.
Quoting fierceman
Well he is an expert on bubbles... and as a purveyor of fiat, also clearly an expert on intrinsic value.
Keynesians love to give birth to boom and bust cycles. We tried it their way, how bout we try to put an Austrian in the Fed
"virtual money isn’t currency"

HAHAHAHA, quote of the year
GOLD has value because there has always been a demand for it. Bitcoins has demand because people think it will be the currency of the future. Do you recall several weeks ago when one of the bitcoins exchanges was closed for money laundering? Well it causes a 33% drop in bitcoin in one session. How could one possibility believe that bitcoin will be used mainstream when it has the ability of dropping 33%.
For sure they are "banksters", but for sure bitcoin is a bubble too. This is not contradictory.

Maybe he had a small short ?
  •  Guest
  • | IP XXX.XXX.36.150
I got some bitcoins, but don't know where to cash it. Can anyone help me?
Quoting Master_kiwa
GOLD has value because there has always been a demand for it. Bitcoins has demand because people think it will be the currency of the future. Do you recall several weeks ago when one of the bitcoins exchanges was closed for money laundering? Well it causes a 33% drop in bitcoin in one session. How could one possibility believe that bitcoin will be used mainstream when it has the ability of dropping 33%.
Does your bitcoin thesis not sound like the one for gold? That's the ONLY reason people hold on to bullion, to protect from fiat collapse. The same holds true for bitcoin.

They both have value to those that use it, like the dollar, the Sterling or the Euro. In the very essence, both gold and bitcoin become the very thing their holders fear...fiat currency.

It is fiat because the group that use it, value you it as such in terms of goods and services. As soon as merchants began to accept bitcoins as payment, it became a fiat currency.
Gold has been drifting down lately. It is something very real. Fiat currencies have real economies behind them and valued on relative performance of these.

What are the fundamentals behind appreciation of the coin as gold is going lower?
Quoting grin
Gold has been drifting down lately. It is something very real. Fiat currencies have real economies behind them and valued on relative performance of these.

What are the fundamentals behind appreciation of the coin as gold is going lower?
Fundamentals behind gold is inflation... which is nowhere to be found. Spot gold is a direct correlation to institution sentiment.
Quoting wlarimer
Ha HA! It's fiat Al, just like the paper all you central bankers are foisting off on people with the b.s. that "full faith and credit" of broken economies has some intrinsic value. Bitcoin is digitally manufactured from no value, just like yen, dollars, euros, francs and whatall's. You click your mouse and instantly, some slavo's owe real productivity for the digital product (nothing) you provided. Don't bag on a competing, clicked into existence from thin air, fiat, just because you don't control it. The relationship is rather obvious.

US invented cars, airplanes, photography, telephones, and most of the lights and computers you are using to communicate. What did Bitcoin invent?
Greenspan should be trusted to know (if he said that) -----------------> Nice One!
  •  Guest
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Quoting Cazadores
US invented cars, airplanes, photography, telephones, and most of the lights and computers you are using to communicate. What did Bitcoin invent?
The obvious. Bitcoin invented another fiat, clicked-into-existence currency (like all the other fiats) that has only the value that people deem it to have.

wlarimer
  •  Guest
  • | IP XXX.XXX.35.142
I think some of the guys above bought or saved bitcoins. and by that making themselves happy by supporting bitcoins. no more spikes in it's value..poor guys.
Quoting Cazadores
US invented cars, airplanes, photography, telephones, and most of the lights and computers you are using to communicate. What did Bitcoin invent?
The obious. Bitcoin invented another fiat, clicked-into-existence currency to compete with all the other clicked-into-existence currencies. Your post sounds like you are proud of the physical accomplishments of real people. I agree entirely, but to confuse printing paper money with anything honorable, seems misguided.

Will.
Quoting Cazadores
US invented cars, airplanes, photography, telephones, and most of the lights and computers you are using to communicate. What did Bitcoin invent?
US invented cars - WRONG! - Karl Benz a German invented the first automobile and before that the British had electric carriages over 50 years earlier and a Frenchman Nicolas-Joseph Cugnot invented a steam vehicle in 1769

US invented airplanes - Correct!

US invented photography - WRONG! - Thomas Wedgwood a British man was the first photographer.

US invented telephones - WRONG! - Alexander Graham Bell is commonly credited as the inventor of the first practical telephone - another Brit.

US invented lights - WRONG! - Sir Humphry Davy a Brit, Warren de la Rue a Brit and Joseph Wilson Swan a Brit all produced various forms of light / lightbulbs way before Thomas Edison's more efficient version came out.

US invented computers - WRONG! - that was British mathematician Charles Babbage

So Britain virtually invented everything!
Quoting Jfr
US invented cars - WRONG! - Karl Benz a German invented the first automobile and before that the British had electric carriages over 50 years earlier and a Frenchman Nicolas-Joseph Cugnot invented a steam vehicle in 1769

US invented airplanes - Correct!

US invented photography - WRONG! - Thomas Wedgwood a British man was the first photographer.

US invented telephones - WRONG! - Alexander Graham Bell is commonly credited as the inventor of the first practical telephone - another Brit.

US invented lights - WRONG! - Sir Humphry Davy a Brit,...
God save the Queen...
And God save Vodka, a Polish invention Jakub! Na zdrowie!
Bitcoin is dead, the future is Bytecoin and then Megacoin and then Gigacoin and then TeraCoin and then....If everybody can create a BitCoin why not I can create RainCoin or BananaCoin or AirCoin, bitcoin only will succeed if people uses it.
Quoting Jfr
And God save Vodka, a Polish invention Jakub! Na zdrowie!
Na zdrowie
Quoting Jfr
US invented cars - WRONG! - Karl Benz a German invented the first automobile and before that the British had electric carriages over 50 years earlier and a Frenchman Nicolas-Joseph Cugnot invented a steam vehicle in 1769

US invented airplanes - Correct!

US invented photography - WRONG! - Thomas Wedgwood a British man was the first photographer.

US invented telephones - WRONG! - Alexander Graham Bell is commonly credited as the inventor of the first practical telephone - another Brit.

US invented lights - WRONG! - Sir Humphry Davy a Brit,...
Good ol Murkia is not that old, try comparing inventions in the past century or half-century.
Money as a currency is regulated by any country or banking authority, means having legitimacy, and the important thing is that a currency is used legally.
Generally, the value of a currency is directly proportional to the ability and the economic situation of a country.
As for gold, platinum, related to demand and supply, or where the amount of precious metal content on this earth.
It means there is a situation of comparing the two types of valuable items, both from the nominal, or legitimacy. And it was done legally. The economic principle occurs because there is scarcity in human life.
The Royal Mint has issued gold bitcoins.
Now perhaps it will be worth it's weight in something. A big step from nothing.
Greenspan should know about bubbles. During his time as a banker he helped inflating a few. As a banker he also should know all too well that fiat currency is the bankers tool for enslaving the world through debt. Bankers produce fiat currency by clicking on numbers of a computer keyboard, or some paper and ink printing. The people who use it pay with their time, work, sweat, with their lives. Bitcoin, on the other end, has to be mined by computers so it actually costs something of value (time and electricity) and it doesn't enslave people with debt for using it. Bankers can control Bitcoin too, if they don't already, but they would rather destroy the Bitcoin concept once and for all, so that they can continue business as usual, controlling everyone with fiat currency backed by debt.

Anyway, since Bitcoin looks like the mother bubble, and everyone on main street says it is a bubble, it might not be unreasonable to think it will go higher.
I checked Bit Coin exchange quotes yesterday. The BC to USD rate and the BC to EUR rate worked out to a EUR/USD of 137.36 while the Forex quote was about 1.50 lower. That was the GOX quotes. A spread of 1.50 would make for a good arb if you could find dealers to make the trade and commissions weren't as unrealistic as the whole Bit Coin concept.
Bitcoin is good it theory but it has many problems, like hacking, adoption. If these are to be solved it will be great, what is scary for the governments is that they cannot inflate it.
USD doesn't have any intrinsic value either.
Quoting spike00spieg
Bitcoin is good it theory but it has many problems, like hacking, adoption. If these are to be solved it will be great, what is scary for the governments is that they cannot inflate it.
Hey if you can't afford bitcoin, theres litecoin, MasterCoin, ElephantCoin, Primecoin, KrugerCoin, CosmosCoin, LuckyCoin, etc etc
  •  Guest
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Quoting Pip Anon
Hey if you can't afford bitcoin, theres litecoin, MasterCoin, ElephantCoin, Primecoin, KrugerCoin, CosmosCoin, LuckyCoin, etc etc
i prefer HeavenCoin..., still has value after you die....buy it with good deeds
Backed by the full faith and credit of bit governments, er...bit-taxpayers.
How the crowd is getting suckered into this craze, scam, and Ponzi scheme is really fascinating to watch. It's a trip back to 1630 Holland!
  •  Guest
  • | IP XX.XXX.174.97
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  • Story Stats
  • Posted: Dec 4, 2013 9:08pm
  • Submitted by:
     Newsstand
    Category: Entertainment News
    Comments: 33  /  Views: 8,109