Investor Rogers Expects Most Crypto To Vanish, Says Some May Survive As Trading Vehicles

WASHINGTON (UrduPoint News / Sputnik - 12th December, 2022) US legendary investor Jim Rogers told Sputnik that he believes most cryptocurrency will eventually fall to zero and disappear or survive purely as trading vehicles.

Crypto exchange-operator FTX announced on November 11 that it was filing for bankruptcy protection, sending Bitcoin and other notable digital currencies plunging. US media reported last week that Federal investigators are probing the FTX case over concerns of market manipulation.

"I am still skeptical about crypto, and I expect most of them will disappear and go to zero eventually," Rogers, the creator of the Rogers International Commodity Index (RICIS), said. "The optimists say the crypto will be money... money everywhere is going to be on the computer - but in my view it is going to be government money."

Nearly all governments are developing crypto or computer money now, he added.

"I don't think most governments will say 'okay, this is our money... now on the computer but if you want to use somebody else's money you can.' That's not the way governments think," he added. "They like to control, they like monopoly... I would suspect that that we're going to have more problems and eventually they will disappear."

Rogers went on to say that if cryptos survive, they survive as trading vehicles.

"I don't think many people are threatened by trading vehicles and people want to buy or sell their stuff and have fun.

Sure people have lots of games they play, trading games, so they are just trading vehicles," he said.

Rogers does not see any potential threat or future for the instruments.

"If I buy wheat and wheat goes down a lot, at least I have some wheat that I can eat. But if I buy this stuff and it goes down, there's nothing I can do with it," he added. "I'm just sitting here and I look and I got nothing."

FTX was ruined after rival digital Currency exchange operator Binance walked away from a proposed acquisition and left it scrambling to raise about $9.4 billion from investors and rivals, a task it was not up to.

Since FTX's announcement, BlockFi, a lender with exposure to the failed exchange operator, also filed for bankruptcy protection.

Bitcoin hovered at 17,000 on Friday, down 64% on the year. The currency started at $0 in 2009, broke the one Dollar barrier in 2011. About a decade later, Bitcoin would hit an all-time high of $69,000.

Rogers co-founded the Quantum Fund, which delivered a return of 4,200% between 1970 and 1980 while the S&P 500 gained 47 percent. Rogers has said such returns are still possible if people do their homework.

Currently the chairman of Rogers Holdings and Beeland Interests based in Singapore, Rogers is also the author of several books including "Investment Biker," "Adventure Capitalist," and "Street Smarts."