Bitcoin, The Black Swan for Cash
Former Fed Chairman Alan Greenspan does not seem to impressed by Bitcoin, the controversial digital currency some see as a fad and a sham.
He compared Bitcoin to the currency issued by the Continental Congress after the American Revolution began.
“Bitcoin is what used to be called fiat money,” he said
“Human nature is such that if you get something such as bitcoin, you think there is some value there whether there is or there isn’t. But that’s the same thing as a Continental, greenbacks in the Civil War, all of these currencies which didn’t have any backing,” he said.
Bitcoin dropped below $7,000 Friday to trade off 5.85% down on the day, having fallen by well over $1,000 since hitting an all-time high Wednesday.
Friday, Bitcoin dropped to $6,800 on the Luxembourg-based Bitstamp exchange by 1200 GMT, before recovering a little to $6,870 just over 20 mins later. Currently trading at 6,775.0049 Vs USD
Wednesday around 1800 GMT, it had touched $7,888 after a software upgrade planned for next week that could have split the cryptocurrency in half was suspended.
As Bitcoin fell, Bitcoin Cash, a clone of the original that was generated from another split on 1 August surged, trading up as much as 35% on the day at around $850, according to exchange data
Despite its pullback this week, Bitcoin is up more than 600% YTD.
International investor Jim Rogers thinks cashless societies are the future, whether the controversial digital currency bitcoin is the solution or not.
“Governments don’t like cash because it’s expensive and because they can’t control you as much.”
Have a terrific weekend.