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Former Federal Reserve Chairman: Bitcoin's value comes from the market demand, is a typical French currency

Alan Greenspan, former Federal Reserve chairman, pointed out that bitcoin is very similar to mainland banknotes, which the United States Congress printed during the War of Independence to fund the war in Britain.

Greenspan was the Fed's chairman from 1987 to 2006. In an interview, he said that Bitcoin is a typical legal currency because its value is derived from the needs of consumers. In this sense, bitcoin is very similar to mainland banknotes, and wartime George Washington and other U.S. leaders used the currency to buy military supplies and other supplies.

Greenspan said:

This type of paper currency can create real products and services.
However, the mainland paper eventually became worthless because it lacks the support of hard assets and the continuing currency devaluation by Congress has also led to its continued devaluation.

Similarly, he thinks bitcoin is "not a rational currency," but that does not mean it is worthless.

Bitcoin is a great example of how human beings create, evaluate, and value. It is not always rational. You can not create out of thin air something that has the value of exchange media. Because this is irrational, this does not mean that it can not be used for trading. Because as long as people think it is tradable, it is the basis for creating a market.
Greenspan said the future of Bitcoin depends on how much the issuer finally released in the market, perhaps revealing his ignorance of the underlying technology for cryptocurrencies. Of course, even bitcoin users know that the supply of bitcoin is software contract ready and its market entry is predictable, until it finally reaches 21 million.

But even if it turns out that bitcoin is worthless, Greenspan thinks zeroing the currency is unlikely because people are often irrational.

People are also buying many worthless things now. Even if the odds are not high, people are willing to continue to gamble in the casino, a similar event has never stopped anyone's desire to buy.