Renowned investor Jim Rogers, known for his expertise in commodities like gold and silver, has cast doubt on the long-term viability of digital assets, specifically Bitcoin. Despite bitcoin’s recent surge in price, Rogers remains deeply skeptical about its future prospects, emphasizing his preference for tangible assets like “rice and sugar” over digital currencies.
Jim Rogers’ Skepticism
Bitcoin’s price has skyrocketed, reaching over $73,000 this month from $28,000 just a year ago, marking a remarkable rally of more than 250% in the fiscal year alone. However, amidst this frenzy, Rogers stands firm in his skepticism, expressing concerns about the sustainability of bitcoin.
Speaking at the India Today conclave, Rogers reiterated his skepticism, stating:
“I’m very skeptical of crypto. I don’t expect it to last. It’s been fabulous for some people now. Not for me, but I do not see any long-term value in cryptocurrency.”
He emphasized his confidence in real-world assets, remarking, “I have more confidence in the future in real things that people can use than I do in Bitcoin.”
Comparing Bitcoin to Tangible Assets
Rogers compared Bitcoin to commodities like sugar or rice, highlighting his preference for tangible assets:
“Whether it’s rice or sugar doesn’t matter. I know that rice will always have value. It has always, I do not know that Bitcoin will always have value.”
Asserting his stance further, Rogers predicted the eventual demise of Bitcoin, stating, “Bitcoin will disappear and go to zero someday.” He contrasted this with the enduring value of commodities like sugar, emphasizing, “The value of sugar is not going to disappear and go to zero someday.”
Bitcoin vs. Traditional Safe-Haven Assets
Despite Bitcoin’s meteoric rise, Rogers remains unconvinced of its potential to replace traditional safe-haven assets like gold and silver. “I don’t think that Bitcoin is going to replace gold and I don’t think it’s going to replace silver,” he remarked, adding:
“Maybe I’m wrong. Maybe I should sell all of my gold and silver and buy bitcoin. But as far as I can see, most people in the world understand gold and silver, but most do not understand Bitcoin.”
Rogers’ Digital Asset Holdings
In response to inquiries about his digital asset holdings, Rogers revealed that he does not own any.
“Well, I don’t own any cryptocurrencies. None. And I never have, but I wish I had bought crypto at $2 or $1. I wish many things. Cryptocurrencies have become trading vehicles for many people. Not for me, I’m not a trader, but many of them have already disappeared.”
While acknowledging digital assets as trading vehicles for some, Rogers maintains his position of skepticism.
He highlighted:
“I have never bought bitcoin. I have never sold or short bitcoin. I do have a lot of gold and silver as you can see […] In my view, cryptocurrencies apparently are good trading vehicles […] I expect them all to disappear someday. Many of them have already disappeared.”
Conclusion
Jim Rogers’ skepticism towards Bitcoin stems from his belief in tangible assets and his doubts about the long-term viability of digital currencies. Despite bitcoin’s recent surge in price, Rogers remains steadfast in his conviction that digital assets may eventually fade away, contrasting them with commodities like gold and silver that he sees as enduring stores of value.
While bitcoin’s current price surge captures headlines, Rogers’ cautionary stance shows skepticism that is still present in many traditional investors. Rogers states that many don’t believe in the future of Bitcoin because they don’t understand it. This seems to be the case with him too. Reading about bitcoin, and understanding how it works and how it differs from commodities like sugar and rice could help investors make better decisions.
