Bitcoin is not an investment. It’s gambling, and the government will never allow it to be used as money because cryptocurrencies are beyond the government’s control, according to legendary investor Jim Rogers.
Rogers, who with billionaire investor George Soros built one of the most successful hedge funds of its day, shared his prediction about the future of bitcoin and cryptocurrency in an interview published in Aera dot with Asahi Shimbun Singapore branch manager Koji Nishimura.
Rogers co-founded the Quantum Fund in 1973 with Soros. They earned a 4,200-percent return from 1970 to 1980 compared to 47 percent for the S&P 500, Bitcoin.com reported.
While he’s convinced that money will soon exist only electronically, Rogers said it will be controlled by the government.
“Everything is settled with electronic money stored in the smartphone,” Rogers said. “Such business practices are already a reality. And it will expand to the world in the future. But keep in mind that the electronic money in your smartphone is government-managed money.
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“The government likes electronic money. Because with electronic money, you can track when, where, who spent what amount. Governments will have more control over people through electronic money.”
However, virtual currencies beyond the control of the government will not be accepted as money, Rogers predicted.
“Those who work on cryptocurrencies seem to think that they are ‘smarter than the government,'” Rogers said. “But the government has something that those who work with virtual currencies don’t have. It’s a gun.”
In the 10 years since it was created, bitcoin has made its share of enemies, Billy Bambrough wrote for Forbes. The bitcoin price reached $20,000 in late 2017, triggering a collective global case of FOMO. Governments clamped down on bitcoin use and companies such as Facebook resolved to create their own cryptocurrency. The price of a bitcoin is $9,186 as of this writing.
Bitcoin claims to be the first decentralized peer-to-peer payment network powered by its users with no central authority or middleman. That lack of central authority is the main reason governments are afraid of the cryptocurrency, according to Investopedia. Its decentralized state has the potential to destabilize or undermine the authority and control of central banks.
“The government wants to know everything,” Rogers said. “Controllable electronic money will survive, and virtual currencies beyond the influence of the government will be erased. I find it unfavorable for the government to become a society that knows too much about our actions. However, virtual currencies beyond the control of the government will not be widely distributed as money.”
Despite his view that bitcoin’s long term value will eventually collapse, Rogers admits that bitcoin could be the longest surviving cryptocurrency.
“Many have already come and gone, so we’ll see,” he said after the Aera dot interview, Forbes reported.
There are many who don’t share Rogers’ pessimism about bitcoin:
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