The following is an interview with Alan Greenspan on CNBC News, very interesting.
Alan: “I’m in the process of jointly writing a book about American history and all I can say to you is Bitcoin looks like the history of fired money in the United States and elsewhere, going all the way back to 1789, if you look for example, at how the Continental which was remember, issued in 1775 and a couple hundred million dollars and by 1782 it was worthless, but before it was worthless George Washington was able to buy a lot of armaments, and all sorts of troop costs and over the period a significant share of that ultimately worthless currency was creating real goods and services that’s what I think is happening Bitcoin”.
Interviewer: “should we conclude that bitcoin is going to be in your opinion ultimately worthless?”
Alan: “No it depends on how they handle the issue of the cumulative, amount of the quantity that that’s being put into the market, in the Continental and the greenback in the Civil War, in all cases the amount of fired currency kept rising and it’s very difficult to tell to what extent Bitcoin is fundamentally different from that, but I am saying that they’ve got very considerable similarities, that was holding the prices up as the supply is down and look human beings, they buy all sorts of things that aren’t worth anything but they do it anyway, people gamble in casinos when the odds are against them but it has never stopped anybody.
Interviewer: “I’ve been thinking about cryptocurrency is a lot in the context of monetary policy because the philosophical beginnings of Bitcoin were about creating a store of value because central banks around the world were profligate but it turns out there can be hundreds of crypto currencies, as you point out which suggests that the supply could be limitless and hence Bitcoin as a particular store of value maybe is questionable”.
Alan: “Look the question is if the value of bitcoins can never be negative and so there’s only one thing it could be, it’s either zero or plus and the way human being estimate value you’re going to get a number of people always consider it a plus, and you happen to be in Bitcoin and you get in early on, you create a huge potential market, but it’s not an accident that virtually all of these crypto currencies that have some semblance of control with them and the mathematics are correct and doing reasonably well”.
Well I am in early and in my opinion for what it’s worth, I think Bitcoin, or at least crypto currency is here to stay.
I think you have to be careful which crypto you buy into, as some already have failed and others are just plain fake.
As for the massive dip in value in the last few days, nothing to worry about, infact best time to buy because this dip has happened at the same time every year.
As found on Youtube