Everyone Is Baffled By Alan Greenspan's Comment About Bitcoin

Alan greenspanREUTERSFederal Reserve Chairman Alan Greenspan testifies before the Senate Judiciary Committee on the effects of the recent wave of mergers in corporate America, June 16. Greenspan told the committee that the economic effects of the mergers were difficult to estimate but noted that they were unlikely to reduce competition substantially.

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:

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?

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