Bitcoin has found a new foe in the form of legendary investor Jim Rogers. In a recent interview, he claims that the worst thing that could happen for bitcoin is that it’s seen as a real and legitimate form of money.
Jim Rogers: Bitcoin Needs to Remain Speculative
Since bitcoin’s initial inception in 2008, the currency has been pushed as a valid currency designed for purchasing goods and services. The asset was built to replace things like fiat and credit cards to give financial power and independence back to the people who would use it and remove themselves from the hands of the big banks that control the global financial system.
However, according to Rogers, if this ever did happen, bitcoin would be in serious trouble, as governments would work extra hard to eliminate it. He states:
If the cryptocurrency succeeds as real money, rather than the subject of gambling as it is today, the government will make the cryptocurrency illegal and eliminate it.
One of the big problems that stems from bitcoin is that it seeks to make the financial world decentralized. This means no more banks, no more standard financial institutions; finance as we know it would completely disappear if bitcoin ever became completely mainstream. While this presents many benefits for the public, those running the banks see the currency as an enemy of their livelihoods. With bitcoin moving further up the financial ladder, these people stand to be out of job.
Right now, the asset is working primarily as a speculative asset. Those who choose to invest in it have an opportunity to see their wealth hedged against economic strife. In addition, they are adding to their portfolios and looking to potentially grow their wealth over time with the addition of a new asset.
Many companies aren’t allowing bitcoin to be used for purchasing goods and services given that it’s still very vulnerable to volatility and price swings, which scares businesses because they could lose money.
This could be something that’s working in bitcoin’s favor. The fact that many institutions still don’t view it as real money could be what ultimately keeps the coin in play. Over time, as its legitimacy is established, perhaps there will be greater use cases for the world’s number one cryptocurrency by market cap, but until then, Rogers feels bitcoin will be much safer as a low-key investment tool.
BTC as Real Money Is Dangerous
The government likes electronic money because with electronic money, you can track when and where who spent what amount. Governments will have more control over people through electronic money. The government wants to know everything. Controllable electronic money will survive, and virtual currencies beyond the influence of the government will be erased… The government has something that those who work with virtual currencies don’t. It’s a gun.