ZeroHedge: Greenspan Baffled Over Bitcoin 'Bubble': "To Be Worth Something, It Must Be Backed By Something"
In order for currencies to be 'exchangeable' they have to be backed by something ... when we were on the gold standard, [currencies] had intrinisc value which made people willing to exchange their goods and services with no question. ... Alternatively, when we went into "currencies", it was the "backing" of the issuer of the currencies... whose "great credit-standing meant his checks could circulate as money.
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I do not understand where the backing of Bitcoin is coming from. There is no fundamental means of "repaying' it by any means that is universally accepted.
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I haven't been able to identfy the intrinsic value of Bitcoin - maybe someone else can...but if you ask me if this is a bubble in bitcoin... yeah it's a bubble.
when asked about the "bubble in bitcoin," by Bloomberg TV's Trish Regan.
Alan Greenspan was former head of the US Federal Reserve. He is clearly not up to speed on bitcoin.
EDIT: Link to video:
http://www.bloomberg.com/video/greenspan-on-bitcoin-i-guess-it-s-a-bubble-Mu~7aDC9Q8i_b0hSa4i6XA.html
