John Paulson, the billionaire hedge fund manager who famously shorted the subprime housing market, now says that Bitcoin and other cryptocurrencies are a “worthless bubble” that’s waiting to burst.
Paulson shared his views on cryptocurrency and Bitcoin during a media interview. Responding to the question of whether he is a believer in cryptocurrency, Paulson stated firmly: “No, I’m not.”
He elaborated: “I would say that cryptocurrencies are a bubble. I would describe them as a limited supply of nothing… There’s no intrinsic value to any of the cryptocurrencies except that there’s a limited amount.”
The billionaire hedge fund manager added that cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless. Once the exuberance wears off, or liquidity dries up, they will go to zero, he said.
Paulson said he wouldn’t recommend that anyone invest in cryptocurrencies – now or in the future. “Invest in areas that you know well. Anyone can be lucky in a particular investment, but that’s not a long-term strategy,” he said.