Earlier today, former Fed Chairman Alan Greenspan discussed Bitcoin with Bloomberg’s Trish Regan.
Regan got right to the point: “Is Bitcoin a bubble?” Regan asked.
“I guess so,” Greenspan said, adding, “You really have to stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it. But if you ask me, ‘Is this a bubble in Bitcoin?’ ‘Yeah, it’s a bubble.”
People are baffled by this remark.
That’s because Greenspan refused to call the housing bubble a bubble, and presided over the dot-com bubble despite seemingly having recognised it as such as far back as 1996, when he made his “irrational exuberance” speech.
Here’s a smattering of the reaction from Twitter:
GREENSPAN CALLS BITCOIN A BUBBLE ASSURING ITS RISE TO $US10,000
— Timothy Connolly CFA (@SconsetCapital) December 4, 2013
I would MUCH RATHER hear Greenspan call Bitcoin a bubble than not. He’s never recognised a REAL BUBBLE of his own making (Y2K, housing, etc)
— Cody Willard (@codywillard) December 4, 2013
Maybe Greenspan got religion since stepping down from the Fed in 2006. But of all the things to now call a bubble, when the evidence is mounting that it’s not necessarily so: Bitcoin?