Well, bitcoin is a currency. Bitcoin has no underlying rate of return. You know, bonds have an interest coupon. Stocks have earnings and dividends. Gold has nothing, and bitcoin has nothing. There is nothing to support the bitcoin except the hope that you will sell it to somebody for more than you paid for it.

The quote "Well, bitcoin is a currency. Bitcoin has no underlying rate of return. You know, bonds have an interest coupon. Stocks have earnings and dividends. Gold has nothing, and bitcoin has nothing. There is nothing to support the bitcoin except the hope that you will sell it to somebody for more than you paid for it" by John C. Bogle offers a critical perspective on bitcoin and its lack of inherent value. Bogle, a prominent investor and founder of Vanguard Group, points out that traditional investments like bonds, stocks, and gold are supported by tangible assets, such as interest, earnings, or intrinsic value. In contrast, he argues that bitcoin is purely speculative, with no fundamental value to back it up other than the hope that someone else will buy it for a higher price.

The origin of this quote can be traced to Bogle’s long-standing philosophy on investing and value. Throughout his career, Bogle advocated for a more conservative and long-term approach to investing, emphasizing the importance of assets that produce returns over time. His views on bitcoin reflect his skepticism toward speculative investments that lack tangible support, contrasting them with traditional investments that provide measurable returns and financial security.

Bogle's statement highlights the speculative nature of bitcoin, which relies solely on the hope that it can be sold to another investor at a higher price. This, according to Bogle, makes bitcoin more akin to a gambling or betting instrument than a reliable form of investment. The absence of a rate of return, such as interest or dividends, means that bitcoin has no intrinsic way to generate value on its own.

In essence, Bogle’s quote warns against the volatility and uncertainty associated with bitcoin, urging investors to be cautious of assets that lack fundamental backing. His perspective encourages a more rational approach to investment, based on stable and predictable assets, rather than speculative ventures that depend on market sentiment.