Bitcoin isn't a fraud; it is sustainable: Bart Chilton

Former Federal Reserve Chairman Alan Greenspan raised concerns about the sustainability of the Bitcoin craze, telling FOX Business’ Maria Bartiromo, “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 the Continental, Greenbacks in the Civil War, all these currencies didn’t have any backing.”

Former U.S. Trading Commissioner Bart Chilton responded to Greenspan’s comments on “Mornings with Maria” Friday.

“I do think it’s sustainable, I don’t know if it’s sustainable at these prices,” he told Bartiromo. “I mean, the only difference is, with Chairman Greenspan is that, you know, people are willing to pay for it and so if they’re willing to pay for it there is a demand.”

Despite concerns about cryptocurrency raised by its critics, Chilton said there is a legitimacy to Bitcoin.

“I don’t think it’s, you know, a fraud, like [JPMorgan CEO] Jamie Dimon said, or a pyramid scheme like [Russian] President Putin said, I mean, people are actually using Bitcoins to purchase things. So, that’s not a scam or a fraud.”

According to Chilton, the CME’s plans for Bitcoin futures by the end of 2017 will bring some much-needed regulations to the cryptocurrency.

“The CME group which has done a great job. You know I used to regulate them all the time so I have a pretty good sense of what they do, you know, that is actually going to go ahead and regulate these things, put some side boards on it.”

On the other hand Chilton hoped there would not be a shift toward the other extreme when it comes to Bitcoin regulations.

“They don’t have to be crazy, overly zealous regulation, but some protections for consumers.  And I think people, the Bitcoin enthusiasts, are starting to get this but it’s taken them a while.”