Billionaire John Paulson warns that cryptocurrencies will not be worthless and Bitcoin too volatile for short-term trading – Bitcoin Planet markets prices

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John Paulson is a billionaire hedge fund manager who made his fortune betting against US real estate markets. He believes that cryptocurrencies will prove to be a bubble that will “be worthless.” Although he sees a lot of downside to crypto, he doesn’t run bitcoin. “Even if I could be right in the long term, in the short term I would be devastated,” he explained.

John Paulson, a well-known investor, predicts that crypto currency will be worthless

John Paulson, the president and portfolio manager at US investment firm Paulson & Co. is a billionaire US hedge-fund manager who gained worldwide fame in 2007 by avoiding the US real estate market. He was a predictor of the subprime mortgage crisis, and he invested in credit default swaps to bet against mortgage-backed securities.

Paulson discussed cryptocurrency and bitcoin Monday on Bloomberg TV with David Rubenstein, founder Carlyle Group.

Paulson answered the question whether he believes cryptocurrency.

He clarified, “I would say cryptocurrencies are a bubble. They are a limited supply of everything. The price will rise if there is more demand for the product than supply. As the demand falls, the price will also fall. There is only a limited amount of cryptocurrencies that have an intrinsic value. The billionaire hedge fund manager also added:

No matter where they are traded, cryptocurrencies will eventually be worthless. They will become worthless once the exuberance has worn off or liquidity has dried out. I wouldn’t recommend anyone invest in cryptocurrency.

Paulson was also asked why not place some big shorts on cryptocurrencies because he believes they will become useless.

He explained, “The reason we shorted the subprime mortgages was because they were asymmetric – shorting an au pair bond that has a limited duration that trades at a 1% spread of Treasuries. You cannot lose more than the duration gap. He continued:

There are many downsides to crypto. Even if I could be right over the long term, I would be devastated over the short term. Bitcoin’s price went from $ 55,000 to $ 45,000 It’s simply too volatile to be short.

What did John Paulson’s comments about bitcoin and cryptocurrencies make you feel? Comment below to let us know your thoughts.

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