Alan Greenspan Shocking Criticism Decoded?

Yesterday, the former FED chairman Alan Greenspan tried to criticize Bitcoin in the course of his CNBC inteview.

Well, that is not how I understood his massage.

1) fiat currencies

He said as follows:

"You cannot tell me that you can create, out of nothing, something that has a medium of exchange value. It is not a rational currency. But that does not mean that it will not trade, because so long as people believe they can sell it to someone elese or unload it on somebody elese that's all you need to create a market (...)"

This statement perfectly describes the fiat currency system dogmas (they are created out of nothing, their value is based on consumers' faith in the financial system).

2) Black Friday Madness

Further, he said: "And look, human beings buy all sorts of things that are not worth anything but they do it anyway".

Thnk you Mr. Chairman! This statement is a perfect description of the annual Black Friday Madness. I have kept criticising it for years. Glad to know that my views are shared by others.

3) Bullish Stock Market

Finally, Alan greenspan said: "People gamble in casinos when the odds are against them. It has never stopped anyone".

Exactly, people usually enter the stock market, when stocks are overvalued. Their emotions are stronger that their common sense.

4) Lessons learned

• Be aware of fiat currencies!
• Do not buy uselless junk!
• Buy stuff that has value (e.g. gold, silver etc.)!
• Be aware of manias and avoid bull markets!