You may remember hedge fund manager John Paulson from the movie The Big Short. He was the one that couldn’t believe what was happening in the real estate market and believed the system would implode. He was right. Now he’s dead against cryptocurrencies, much like Your Survival Guy.
In a recent interview with Bloomberg’s David Rubenstein, Paulson described cryptocurrencies as “a limited supply of nothing.” He also predicted the speculative asset would go to zero. The NY Post reports:
Hedge fund manager John Paulson made $20 billion predicting the downfall of the US housing market in 2008. Now, he’s predicting cryptocurrencies will “go to zero.”
“Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless,” Paulson told Bloomberg in an interview. “Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies.”
Despite Paulson’s bearish stance on crypto, he said the short-term volatility of the digital asset makes it too risky for him to short, or place bets against.
Ultimately the price fluctuation has to do more with the relative supply of the coins, Paulson added. “There’s no intrinsic value to any of the cryptocurrencies except that there’s a limited amount.”
Action Line: Don’t bet against us.
Originally posted on Your Survival Guy.