Cryptocurrencies would be worthless says billionaire John Paulson

Cryptocurrencies are the new craze right now, and at present, it seems like they are here to stay. But John Paulson, a hedge fund manager, billionaire and also one of the people who bet against the housing market in 2008, thinks cryptocurrencies would be worthless in the future. He also said that he wouldn’t be shorting anything because in the short term, it is very volatile, and he could be wiped out. I think John is the first person to say that in the long term, crypto won’t exist.

John Paulson’s view on the crypto market

John also thinks that Bitcoin is just too volatile even in the sense of shorting it at this critical time. He believes that crypto is a bubble and the limited supply is nothing special. John’s logic is limited supply will mean something if there is demand. But if there is no demand, then limited supply or not, nothing is going to happen. He also said that crypto doesn’t have any intrinsic value, and he is not a believer in them. These statements align with  Micahel Burry, who also became famous for his housing bubble predictions in 2008.

Cryptocurrencies would be worthless says John Paulson
Image Source: CNBC

John Paulson is a big hedge fund manager, and it does make sense to give some credit to his understanding of the market. He thinks the reason cryptocurrencies are up is the excitement surrounding the new form of investment. People are seeing huge returns, NFTs, new tokens, and they are falling into this trap. But once this wears off, the prices will fall. In fact, the huge volatility of crypto is also a big problem.

The clash

One of the reasons that crypto is up is the rise in inflation rates and the falling value of the dollar. People need to keep their money intact, and crypto has proven to be a great mechanism for that till now. Now, if the same thing continues to happen and the feds are unable to control inflation, then crypto will rise, and so will gold and silver.

What are your thoughts on John Paulson’s statement that cryptocurrencies would be worthless? And do you think that crypto has some intrinsic value? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

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