Famous investor Jim Rogers shared his prediction about the future bitcoin and cryptocurrency in an interview with Asahi Shimbun Singapore branch manager Koji Nishimura, published on Friday. Rogers cofounded the Quantum Fund in 1973 with billionaire investor George Soros, which was considered one of the most successful hedge funds in its heyday. They earned a 4,200% return over 10 years through 1980 compared to 47% for the S&P 500.
Rogers believes that if cryptocurrency succeeds in being used as money, instead of primarily for speculation, governments will intervene, making it illegal in order to stop its use. For this reason, "I believe that the [value of] virtual currencies represented by bitcoin will decline and eventually become zero," he told the publication. "It is hard for us to move money without the control of the government," Rogers said, elaborating:
"The government wants to know everything. Controllable electronic money will survive, and virtual currencies beyond the influence of the government will be eliminated."
Rogers explained that cryptocurrency markets are volatile, particularly during the global economic crisis. "Even though cryptocurrencies did not even exist a few years ago, in the blink of an eye, they become 100 and 1,000 times more valuable … This is a clear bubble and I don't know the right price," he opined, emphasizing that cryptocurrency is not an investment but gambling.