Well-known American investor and financial commentator Jim Rogers still believes that Bitcoin is largely overvalued, and its price will eventually plunge to zero. He argued that virtual currencies are just gambling, and the volatility behind the market will play a significant role in destroying it.
Jim Rogers: Bitcoin Is Heading To Zero
In a recent interview, the co-founder of the Quantum Fund and Soros Fund Management expressed his unfavorable opinion of Bitcoin and the rest of the cryptocurrency market. He suggested that investing in any virtual currency is “not an investment target” as it’s “just gambling.” He based his arguments on the largely volatile cryptocurrency market:
“Cryptocurrencies didn’t even exist a few years ago, but in the blink of an eye, they became 100 and 1000 times more valuable. This is a clear bubble, and I don’t know the right price.”
He added that people who believe in cryptocurrencies consider themselves “smarter than the government. But the government has something that the people who work on virtual currencies don’t. That’s guns. I think that virtual currencies will disappear eventually because they are not based on the armed force of governments’ power.”
With his latest narrative against the cryptocurrency field, Rogers reaffirmed his previous stance from November 2017 when he noted that Bitcoin “looks and smells like all the bubbles I have seen throughout history.”
It’s worth noting that the primary cryptocurrency was on its way to peaking at nearly $20,000 at the time. Shortly after, however, the price plunged, and that became known indeed as a major bubble in the digital asset market.
Virtual Money Not Virtual Currencies
While his bearish stance on cryptocurrency remains firm, Rogers believes that the human race will eventually digitize money. He mentioned that ‘in China, money already exists only in computers and cash can hardly be used. Even if you hold the yuan, you cannot even take a taxi. Everything is settled with the electronic money contained in the smartphone.”
Nevertheless, he pointed out that “electronic money in your smartphone is government-managed money.” He explained that world governments prefer such operations as they can track each spending more efficiently and ultimately keep control over people.
Yet, he made sure to emphasize again that virtual money created and operated only by governments will endure, while cryptocurrencies will not. Rogers reached out to history for his arguments:
“In the UK in the mid-1930s, the Bank of England said, “If you spend money other than our money, it will be treason.” Rebellion means “to the death penalty.” Therefore, no one has ever used anything than money issued by the Bank of England.”
So even if cryptocurrencies outlive their current status of “gambling funds,” governments won’t allow their adoption to continue by making them illegal. Ultimately, no money outside of the government control will exist, Rogers added.
Featured Image Courtesy Of Nikkei