Bitcoin will decrease and eventually go to zero. Word of Jim Rogers, one of the biggest investors in the world alongside Warren Buffett and George Soros.
This statement was made to a Japanese magazine. It is a brief intervention in which the tycoon explains that he does not believe in virtual currencies and thinks they are a bubble because a few years ago they simply did not exist and today there are thousands. He compares them to gambling.
In his speech, however, there are also references to the so-called CBDC (Central Bank Digital Currency). According to Rogers, governments would love this type of electronic currency since they can monitor spending. Moreover, virtual currencies have no issuing costs since they are not on paper. However, according to him, currencies not issued by the government will not be accepted.
Jim Rogers, Bitcoin and the 2017 bubble
The US entrepreneur, now in Singapore, said in an interview with FoxBusiness in November 2017 that Bitcoin looked very much like a bubble.
At the time Bitcoin was worth $9,700, and Jim Rogers answered without hesitation to the journalist who asked him whether BTC was a bubble:
“Well, if you just showed me charts and showed me what’s happened in that market over the past year or two and didn’t tell me what it was, I would say Stuart this looks like every bubble I’ve ever read about”.
And he added:
“I don’t own any Bitcoin, I’ve never bought or sold so I’m not a good one to ask but it sure looks like a picture of every bubble I’ve seen”.
Two months after those comments, Bitcoin had been on a seesaw that saw it hit a $20,000 peak and then plummet. It had experienced what is still considered the biggest speculative bubble in his history.
Almost three years later, Jim Rogers hasn’t changed his mind, and indeed he is pessimistic.
It’s funny that his words arrive these days when Bitcoin is fluctuating at the $10,000 mark.
Though the context is markedly different from that of 2017. Today Bitcoin is “mature” and has become a very popular tool even among institutional investors, as evidenced by the trading on options and futures markets such as CME and Bakkt.
Even yesterday’s news, according to which PayPal could soon launch a service to buy and sell cryptocurrencies, is a sign that Bitcoin is not going to zero. Quite the opposite, mainstream adoption is becoming ever more likely.
What if it’s regret?
Jim Rogers’ words of 2017 and 2020 actually clash with the statements he made to China Money Network in 2014. At the time, he admitted that he did not invest in Bitcoin with some regret:
“I never learned enough about it. If I were smart, I would have bought it in the early days when people first told me about it. I still don’t know enough about it to invest in it. Of course, I may have missed it”.
If at the time he chose not to invest because of “ignorance”, Jim Rogers seems to have developed the clear opinion that it is better to stay away from Bitcoin.
All this in a historical moment that, despite some hesitations, suggests that Bitcoin is unlikely to be worth zero.