Billionaire John Paulson Says Crypto Is Nothing But A Bubble
John Paulson, a billionaire who made a name and fortune for himself and other investors when he shorted the mortgage bonds during the housing crisis in the United States around 2008/2009, spoke with Bloomberg TV that no one is advised to enter the crypto market because it is nothing short of a bubble.
Paulson Decry Crypto and Sing Praise of Gold as a Better Inflation Hedge
Ten years ago, during the US mortgage crisis, the billionaire made a sum of $20 billion by just shorting the subprime options. The now 65-year-old expects the increasing printing of USD to cause inflation more than anyone would expect. However, he claimed that the best asset option a person will result in, to hedge inflation at the moment.
In discussion with Rubenstein, the co-founder of Carlyle Group on Bloomberg TV, Paulson said cryptocurrencies would prove worthless eventually.
After the exciting moment ten years ago, the billionaire’s net worth dropped from nearly $40 billion to about $9 billion in 2011. Paulson turned his hedge fund to a family office where he has been engaging in investments only, managing his funds.
After making billions, the billionaire made huge deals from gold and its future markets, and some people began to call him a “gold bug.” Though the price of the assets declined to $1,700, Paulson reckoned that the precious metal is still the best hedge for inflation as it was in 1970 when inflation last happened.
He, however, explained that gold got its value from its limited supply.
Digital Assets Have Limited Supply for Nothing
John Paulson referred to crypto as nothing but a bubble, as he called it “a limited supply of nothing.” He claimed that the assets have no intrinsic value at all despite its limited supply as it is with BTC.
“It is a matter of time,” he said, “crypto will be worthless, as the liquidity will dry up, and the excitement around it will wear off sooner or later.”
Also, Steve Eisman, a trader known for housing market shorting and the big character in a movie – Big Short, advises everyone to stay aware of bitcoin. In 2018, he showed a very high level of scepticism towards cryptocurrencies claiming there is no value attached to them.
