Jim Rogers, the expert who once mentioned the rise of a Bitcoin financial bubble by 2017, now makes a curious prediction about the decline of this cryptomone currency. Specifically, he has said that cryptomonies will be set aside as time goes by. According to him, the price of Bitcoin will eventually fall to 0, just like other altcoins.
PayPal may soon accept Bitcoin on its platform
Why does Rogers think that the price of Bitcoin will fall to 0?
One of the strongest arguments used by Rogers is the simple presence of governments. He believes that the crypto-currency community may be smarter than any government, but in the real world it is the governments that have the advantage.
Why? „Because governments have something that the crypto-community doesn’t have, and that’s weapons,“ he said.
Based on this, he clarifies that the currencies present in the global economy, maintain their value by various factors. Their value is influenced by monetary policies, people’s trust in them, and their stability.
In contrast, Rogers believes that BTC and other similar currencies have only been able to acquire a fictitious value that sooner or later will cause the cryptomania to fall.
These statements should be viewed with a magnifying glass, considering that in the current context of the world with the COVID-19 pandemic some certainties are being challenged.
Can central banks maintain the value of fiduciary currencies, and are cryptomontages like Bitcoin the best alternative to the crisis? This is what we will be able to answer in hindsight in the months to come.
The Bubble and the Cryptcoins: A Game
Historically, cryptomonies have never been as popular as in the last four years. They were much more highly valued than in previous years because of the immense popularity they gained thanks to the miners, who were increasing every day.
For Rogers, this represented a bubble warning. In this way, the investor made known his perception of the Bitcoin market, describing it technically as „a game“.
This is a clear bubble (…). Crypto currencies are not an investment target. It’s just a game.
Rogers, however, is not alone in highlighting the existence of this Bitcoin Future financial bubble. In the past, many billionaires and well-known investors around the world, such as Warren Buffett and George Soros, have described this market in the same way.
However, Bitcoin’s growth has been sustained since its creation 11 years ago, and every day there are initiatives that only strengthen it. This doesn’t stop it from being certainly a volatile asset, but it is precisely this that attracts many investors.