The housing market did collapse back in the day, and it was a serious bubble that almost deteriorated the US economy. There were some insightful people present at that time, and most of them are billionaires now; why? Because they were wise enough to short the housing market in an imminent mortgage crisis, and eventually, the housing market did collapse making them billions. John Paulson was among those who shorted the housing market and made a fortune doing so; these were the subprime mortgage bonds that he shorted and those that earned him the title of a billionaire.
It has been ten years since the last housing market crisis, and since then, a lot has changed; conveniently, enough people are moving towards Bitcoin and other crypto-assets because they believe this to be a hedge against inflation rather than gold. But John Paulson being old school, still believes that it is the gold that is still a hedge against inflation and the crypto market is nothing more than a bubble that would eventually burst. When something is allowed to grow and expand without any watchful oversight, it usually ends up being a disaster, and according to Paulson, this is where the crypto market and anyone involved with it is going.
Gold as Inflation Hedge
Paulson is sincerely assertive with the above-mentioned thought; he has been investing over the past few years, trying to manage his own funds. The most interactive piece of investment that John has invested in from head to toe is gold and gold futures. He is strongly affirmative of the fact that should inflation hit us again; it would be gold coming to people’s aid other than Bitcoin, Ethereum, or any other cryptocurrency in general. The fate of any initiative that is allowed to expand without any watchful oversight is to end up in a bubble and then burst eventually; according to John, this is where the crypto market is headed, and all investors and traders should jump ship when they can.
This is, of course, his personal thoughts on the subject and is not in any capacity relative to a dedicated crypto trader or investor out there. Despite all that, it is a known fact that the crypto market is extremely volatile, and one should be very careful investing their life savings in it and, therefore, should be left to experts and serious traders to explore.