Billionaire: ‘Cryptos are a bubble. A limited stock of nothing’
Hedge fund manager John Paulson sees crypto as a bubble. And the man is known for his vision in which he is often right.
The IMF previously warned that cryptos are dangerous. This billionaire doesn’t go that far, but he isn’t a fan of the digital coins either. The best man became super rich by betting on the American housing market. He says cryptos are a bubble that will prove worthless in the long run.
crypto bubble
Okay, it’s obvious. The man is not in favor of cryptos. But these types of investors do seize their opportunities as long as there is money to be made. Paulson says he won’t go short at this point (betting on the fact that the coins will fall and make money as a result). He explains: “Even though I could be right in the long run, in the short run I would be wiped out”.
Paulson is the president and portfolio manager of American investment firm Paulson & Co. He is a hedge fund manager who became world famous in 2007 by shorting the US housing market. He anticipated the subprime mortgage crisis and bet on mortgage-backed securities by investing in credit default swaps. So he has some experience in forecasting and going short, we can confirm that.
Not enthusiastic
He’s not really excited about the digital coins. Last week he was on TV at Bloomberg when the question was asked if he believed in Bitcoin. When asked if he is a believer in cryptocurrency, Paulson confirmed: “No, I am not.”
He went on to say, “I would say cryptocurrencies are a bubble. I would describe them as a limited supply of nothing. So if there is more demand than the limited supply, the price would rise. But as demand falls, the price would fall. There is no intrinsic value to any of the cryptocurrencies other than there are a limited number. He has a point there, but do the coins represent no value? That should be the future.
