- Veteran Investor Jim Rogers predicts imminent doom for cryptocurrencies that aren’t state-backed, citing the BTC prominently.
- He has predicted that the government’s push to control the electronic currency realm is Bitcoin’s Achilles heel.
Investor Jim Rogers has now spelled doom for Bitcoin, generally virtual currencies that are not state-backed. This was in a report published by a Japanese media outlet, Aera Dot.
He has expressed the sentiment that the governments globally have put a ceiling on how much cryptocurrencies could adopt. He believes that as soon as a cryptocurrency is taken up as an alternative for fiat rather than being utilized in the betting industry as with the current scenario, governments in the jurisdictions would move to ban the crypto.
Digital Asset Data reports have revealed that most of the Bitcoin in circulation are in holding, proving it is yet to be taken up as a perfect substitute to fiat. 11 million out of the current 18 million BTC that have been mined lay inactive for the better part of last year.
Electronic currency easier to Trace
The Quantum Group Cofounder highlighted the government’s preference for electronic currencies attributing this to the fact that it is easier to trace. This ensures the government’s grip over the residents. Therefore, any crypto asset that outgrows beyond the government's control risks being terminated.
Notably, various governments have announced plans underway for the development of Central Bank Digital Currencies (CBDC’s). China is seemingly in the lead, with reports indicating that they have completed the back end for the digital Yuan. However, the potential launch dates are yet to be announced. Most of the crypto communities are currently leveraging the BTC as a safeguard against government interference; there is, however growing sentiment that the proposed Digital Dollar could only entitle the government further.
With the US government issuing a historic stimulus package and aid amounting to almost $3 Trillion to cushion their economy from setbacks of Covid-19, some industry analysts have called for the adoption of BTC. Paul Tudor Jones and Dan Tapiero have touted the BTC as a potential hedge for looming inflations.
Roger is opined that the BTC’s value will eventually plummet to zero, insinuating that the cryptocurrency was amidst a bubble. He has highlighted that it will likely outlive all the other cryptocurrencies in circulation currently.