Greenspan Says Bitcoin a Bubble Without Intrinsic Currency Value

Bloomberg has an article about Alan Greenspan’s struggle to understand Bitcoin. Here are some gems from the article:

“You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it.”
“I do not understand where the backing of Bitcoin is coming from.”

Dude, your inability to research the many sources of information on the inherent scarcity and computation-based value of cryptocurrency is not an indictment of it’s worth. Central bankers are like cavemen at a computer. They are completely bewildered.

Furthermore, intrinsic value is a myth. Every individual values every thing differently. There may be commonalities and social consensus but the value derives from this consensus. There is, perhaps, an inherent usefulness of a thing for a given purpose, but that is not value. It is only the precursor to value. The value you place on the thing is your appraisal of said usefulness.

The best bit of the article is a quote from also former Fed Chair Ben Bernanke:

“Although the Federal Reserve generally monitors developments in virtual currencies and other payments system innovations, it does not necessarily have authority to directly supervise or regulate these innovations or the entities that provide them to the market,” Bernanke wrote to lawmakers.

That’s right. Get back to your game of Global Monopoly, central bankers. We’re designing the future here.