Former US Federal Reserve chairman Alan Greenspan said that Bitcoin can be compared to that of the early form of money in the US called the “Continental currency” that was used during the American Revolution in the mid-18th century. The money was introduced in 1775 and became worthless by 1782.

In an interview with CNBC, Greenspan claimed that Bitcoin is irrational and will eventually suffer the same fate as the Continental currency, which was not supported by a commodity like gold during its time. He added that the war currency was still utilized to create “real goods and services,” even though it had no real value. He argued that that is the state of Bitcoin today.

"Bitcoin is really a fascinating example of how human beings create value, and is not always rational ... It is not a rational currency in that case."

Phenomenal performance of Bitcoin

The criticism by Greenspan on the value of Bitcoin comes amidst the eye-popping upward trajectory of the price of the most famous virtual currency. The number one crypto has gained thousands of dollars in value in the past two days.

Based on the price index, Bitcoin price has reached a record price of more than $16,000 per token within the past 24 hours.

The phenomenal increase in the value of Bitcoin has compelled many respected personalities in the financial industry to claim that the Bitcoin market is a bubble. In his comment, JPMorgan CEO Jamie Dimon has criticized the number one cryptocurrency as a “fraud.”