In Brief:
- According to billionaire investor John Paulson, Cryptocurrency is “a limited supply of nothing.”
- John Paulson is the founder of New York-based investment management firm Paulson & Co.
- He advised buying gold in expectation of rising prices
John Paulson, billionaire hedge fund manager, who became famous in 2007 by shorting the US housing market, stated that cryptocurrencies are just a “bubble.” “Regardless of where they’re trading today, they will eventually prove to be worthless,” he further added.
John Paulson admitted in an interview with Bloomberg Wealth that “once the exuberance wears off or liquidity dries up, they will go to zero.” He further added saying “I wouldn’t recommend anyone invest in cryptocurrencies.”
He claims that the cryptocurrency market’s volatility is a convincing reason to avoid it.
However, when he was questioned about why he doesn’t short cryptocurrencies, Paulson stated that prices are just “too unpredictable” to properly short cryptos. “In crypto, there’s unlimited downside,” he added. “So even though I could be right over the long term, in the short term, I’d be wiped out,” he said further.
Yet, he recommended buying gold, predicting that rising inflation would cause the metal to appreciate due to its status as a safe haven asset.
Paulson finally concluded by saying that he’ll keep buying gold as the money supply rises, anticipating higher inflation.
