Roger Montgomery isn’t Convinced that Bitcoin is a Viable Monetary System

Bitcoin (BTC) made headlines across international media amid the exponential price growth from the US$20,00 price level in January to over US$50,000 today. During which, many prominent companies have been adding Bitcoin to their balance sheets.

However, a leading Australian investor and the chairman of Montgomery Investments, Roger Montgomery, is having none of that. He needs more convincing that the cryptocurrency can make a good means of exchange.

Just a mere belief

Montgomery made his thoughts known while speaking in a recent interview with Ausbiz concerning investing in Bitcoin. He sees the cryptocurrency as a “digital collectible” that is similar to other collectibles like gold, art, or wine. According to him, he’s yet to hear an argument that the largest cryptocurrency will become a viable monetary system.

“I’ve looked at the arguments in support of buying Bitcoin fairly carefully, and my observation is that most of the arguments are a belief in the future use of the currency,” Montgomery said. “So the belief in it being a universal digital currency is not the same as articulating the path that it actually takes to get there. Not only does it have to be universally accepted, but it has to replace fiat money.”

Also, in order for Bitcoin to become a means of exchange, Montgomery argued that the cryptocurrency must be a stable store of value, “which it isn’t.” He also mentioned that Bitcoin isn’t largely regulated, and so he wouldn’t invest in it. “If I was going to speculate. I’d rather speculate on things that are regulated, and I know my money is going to be protected and not hacked,” Montgomery added.