Cryptocurrencies “ultimately worthless”, says a top investor and advises gold instead

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After a period of weakness, the crypto market is on a growth path. The well-known investor John Paulson sees Bitcoin and Co. as “worthless” – and recommends gold.

The financial investor and hedge fund manager John Paulson made a name for himself in 2007 when he bet against the real estate market during the mortgage crisis in the USA and made a profit of almost 20 billion US dollars. Now Paulson sees another market that could face a huge collapse: cryptocurrencies. These would “ultimately turn out to be worthless,” the top investor told Bloomberg Wealth.

The value of Bitcoin and Co. will go to zero as soon as the hype subsides or liquidity runs dry, said Paulson. However, cryptocurrencies like Bitcoin are too volatile to bet on an impending crash. In the crypto sector, according to the founder and president of the investment company Paulson & Co. in the interview, unlimited losses are possible. Even if you were right in the long run, you could lose your entire fortune with a short bet in the short term.

People who had a larger sum to invest should be more likely to invest in buying their home. Given the rising house prices, the investment will most likely pay off in the long term. Paulson also advised investing your money in gold. There is only a limited amount of it. With soaring inflation and low interest rates, many investors would take their money out of stocks and savings accounts and invest it in gold. A logical conclusion for Paulson: the price of gold is rising.

In the current crypto hype phase Paulson with his negative forecast for the market, however, pretty much alone – if you disregard Donald Trump. After reaching its all-time high in May and a subsequent severe slump, Bitcoin, for example, had gained momentum again in recent weeks and most recently broke the $ 50,000 mark. Bloomberg chief analyst Mike McGlone, for example, only predicted a Bitcoin rate of $ 100,000 and an Ethereum rate of $ 5,000 in his Crypto Outlook on Friday.