Raw materials in this article
Forex in this article
• Risky crypto investments
• Risk of “government money”
• Focus on silver and agriculture
Jim Rogers not a crypto fan
Cryptocurrency trading has now reached all kinds of investors. Financial institutions have recently recognized this trend, even though digital asset trading on the blockchain was originally developed as a counter to traditional banking. Now, however, both institutional and private investors must be enticed to invest in Bitcoin, Ether & Co.
However, American hedge fund manager Jim Rogers is still not a fan of cybercoins, as he recently explained in an interview with “Bloomberg” host Michelle Jamriskoat at the Asia Wealth Summit. “Looking around, a lot of people I know have invested in cryptocurrencies, had fun and made money,” said the market expert. Nevertheless, the investments are often accompanied by drastic losses.
Warning about regulation
However, what specifically prevents the experts from investing in cryptocurrencies is the market view that the digital coins will eventually be used as real currencies. Due to the plans of several central banks to create their own digital central bank currency, this future scenario becomes much more likely. “If all our money is on our computer, it will be public money,” Rogers fears. “And every government is working on cryptocurrency. They won’t say it’s a currency, but if you [stattdessen] want to use this currency, you can use it. Bureaucrats don’t think like that. Politicians don’t think like that. You want control. They want to regulate everything.” This means that all other digital currencies may be useless if the respective government of a country has committed to a specific means of payment, according to the investor.
Instead of Bitcoin & Co.: These assets may be worthwhile
Instead, investors should look for alternatives, as Rogers advised ET Now a few weeks ago. “Silver and agriculture are probably the least dangerous stocks over the next two or three years,” he said. “Silver is probably less dangerous than other things. Gold is probably less dangerous.” Silver and gold cannot simply be reprinted as fiat money, and according to the hedge fund manager, prices remain relatively stable even in times of crisis. Still, investors shouldn’t just blindly go in blind and stock up on silver and gold. “I’m not buying them now because if there’s a big collapse, everything goes down,” Rogers explained. “But I will probably buy more silver if the price falls further.”
The agricultural sector, on the other hand, can be worthwhile because the industry is likely to continue to experience high demand in the future. “If we don’t stop wearing clothes and eating food, agriculture will improve,” Rogers told Wealthion last year. “If you really love her, go out and buy a farm and you’ll be very, very, very rich,” he said.
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claim for recourse.
Image Credits: Wit Olszewski / Shutterstock.com, provided by Jim Rogers