Bitcoin

A legendary investor just predicted the end of the US dollar and warned about bitcoin’s future amid extreme crypto price swings

A legendary investor just predicted the end of the US dollar and warned about bitcoin's future amid extreme crypto price swings

The United States has imposed unprecedented sanctions on Russian banks, the wealthy and the country’s central bank in recent weeks, going so far as to ban it from accessing its foreign exchange reserves.

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As a result of these sanctions, some Russian oligarchs have turned to bitcoin and cryptocurrencies, boosting the price of bitcoin somewhat, while Russia itself hastened the long process of ending its dependence on bitcoin. -to American financial companies such as Visa and the international interbank payment system SWIFT.

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Now Quantum Fund and Soros Fund Management co-founder Jim Rogers has warned that “what’s happening with the US dollar is now the end of the US dollar” – but warning that governments are unlikely to allow the using bitcoin as an alternative.

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“An international currency is supposed to be neutral but in Washington they are now changing the rules,” Rogers told India. Economic period in an extensive interview. “Now if Washington doesn’t like you, they impose sanctions on you and you can’t use US dollars.”

Rogers expects countries to start “looking for a competitor” to the dollar, citing China, Russia, India, Iran and Brazil as all interested in reducing their reliance on the dollar.

“The United States is the biggest debtor country in the world, so for fundamental and political reasons people are looking for competing currencies,” Rogers said, adding that he doesn’t know yet what that would be, but hopes that he’s “smart enough to buy when you find him.”

Others echoed Rogers’ concerns. “[Russia has] nearly 50% of their reserves in currencies controlled by people who want to hurt them…they have 22% in gold, that’s the only part of their reserves that other countries can’t control,” he said. noted investor Bill Miller said last week, adding “from Russia’s perspective, this is not a good position.” Russia is believed to have around 16% of its foreign exchange reserves in US dollars.

Although some members of the crypto community are suggesting bitcoin could replace the US dollar, Rogers expects the government to eventually “ban” it.

“I don’t like it, but that’s the way governments are, and I just suspect they’re either going to tax it, or regulate it, or ban it or something because they don’t want to lose the control,” Rogers said, adding to predictions he previously made that bitcoin’s price will eventually drop to zero due to government crackdowns.

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Last year, El Salvador became the first country in the world to start buying bitcoin, hoping to break its reliance on the US dollar and the traditional financial system, with some lawmakers in other countries considering take a similar step.

In January, Wall Street giant Fidelity predicted that other countries and even a central bank could follow El Salvador into bitcoin this year, saying those who buy bitcoin when the price is low “will be more competitive than their counterparts. peers”.