Wed. Oct 20th, 2021

Picture of the article titled Billionaire Investor, who predicted the 200H housing crash, said crypto is a 'worthless' bubble.

Pictures: Spencer Platt (Getty Images)

John Paulson, the billionaire investor who accurately predicted (and bet against) the subprime mortgage crisis in 2007, has some sort of term for cryptocurrency: primarily, it is a zero financial bubble that is bound to eventually burst.

“I wouldn’t advise anyone to invest in cryptocurrency,” Paulson said. Bloomberg During a recent interview.

The financier, who Retired From the hedge fund business, it came close to 4 4 billion in 2007 when it bet against the subprime mortgage market – a decision He is known to have been made “One of the greatest fortunes in the history of Wall Street.”

During his recent conversation with Bloomberg, Paulson described cryptocurrency art as having no real value other than tokens. Which exist in limited supply. He said the industry would eventually prove “worthless” in the long run. When asked if he was a fan of crypto, he put it this way:

No, I’m not. And I would say that cryptocurrency is a bubble. I will describe none of them as limited supply. So the more demand there is than the limited supply, the higher the price will be. But the lower the demand, the lower the price. No cryptocurrency has any intrinsic value, except for a limited amount.

Cryptocurrencies, regardless of where they are trading today, will eventually prove worthless. Once the ebb has stopped, or the liquid has dried up, they will go to zero. I would not advise anyone to invest in cryptocurrency.

Paulson added that the crypto market was too volatile to bet as effectively as the housing market in 2007.

The reason we shortened the subprime in size was because it was unequal – equally short of a bond that has a finite duration that trades at a 1% spread of treasuries. So you can’t lose more than spread over time. In crypto, there are limitless negative aspects. So even though I could be right in the long run, in the short term, I would be wiped out. In the case of Bitcoin, it went from $ 5,000 to $ 45,000. It is very short volatile.

So there you have it. Some high praise.

Honestly, Paulson was not the only one to make this prediction. Many other important business people (see: Jamie Damon And Warren Buffett, For example) Share Crypto’s “None Supply” view with a similar theory about the upcoming token-fuel financial recession. Such professional opinions have not stopped a recent one Increased interest In currency.

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