Recently, legendary investor and Austrian School economist Jim Rogers in his interview with Japanese media outlet Asahi admitted that he foresees a very sad future for Bitcoin (BTC) and cryptocurrencies. What makes him think so? And why does the Ripple CTO disagree?
'Governments have guns'
Like many other old school investors, Jim Rogers believes that both Bitcoin (BTC) and altcoins are clearly bubbles. These institutions are too immature, so, their rapid growth is nothing but euphoria.
Also, according to the investor, interest in cryptocurrencies is based on the demerits of the modern fiat-based monetary system. Crypto holders try to outsmart governmental control, but they have no chance to succeed. State-backed institutions still have too much power to disrupt the cryptocurrency sector with their 'guns'.
In turn, cryptocurrencies lack the 'armed force' of governmental power and that's why they would be easily destroyed by states, the investor admitted.
However, he thinks digital money is a valuable concept, and governments will use them to advance asset control systems. That's why some states are researching digital currencies and their use-cases. As covered by U.Today Crypto News, Saudi Arabia recently deployed a blockchain system for the interaction between the central bank and local banks.
Price may not even decrease
Ripple CTO David Schwartz highlighted that government restrictions typically are not effective in this industry. It is unlikely they will even push its price down, let alone destroy Bitcoin (BTC) completely.
He reminded his followers that regulatory restrictions or bans do not result in price declines for assets.
Three weeks ago Jim Rogers recommended avoiding taking investment advice from states. He insists that this warning is particularly important in a time of recession.