{"id":11508,"date":"2021-08-31T00:54:06","date_gmt":"2021-08-31T00:54:06","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/billionaire-john-paulson-warns-cryptocurrencies-will-be-worthless-bitcoin-too-volatile-to-short\/"},"modified":"2021-08-31T00:54:06","modified_gmt":"2021-08-31T00:54:06","slug":"billionaire-john-paulson-warns-cryptocurrencies-will-be-worthless-bitcoin-too-volatile-to-short","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/billionaire-john-paulson-warns-cryptocurrencies-will-be-worthless-bitcoin-too-volatile-to-short\/","title":{"rendered":"Billionaire John Paulson Warns Cryptocurrencies Will Be Worthless, Bitcoin Too Volatile to Short"},"content":{"rendered":"

Billionaire hedge fund manager John Paulson, famed for making a fortune betting against the U.S. housing market, says that cryptocurrencies are a bubble that will prove to be \u201cworthless.\u201d While he sees unlimited downside to crypto, he will not short bitcoin, however. \u201cEven though I could be right over the long term, in the short term, I\u2019d be wiped out,\u201d he explained.<\/strong><\/p>\n

Famous Investor John Paulson Predicts Crypto Will Be Worthless<\/h2>\n

John Paulson, the president and portfolio manager of U.S. investment firm Paulson & Co., is an American billionaire hedge fund manager who became world-famous in 2007 by shorting the U.S. housing market. He foresaw the subprime mortgage crisis and bet against mortgage-backed securities by investing in credit default swaps.<\/p>\n

Paulson shared his views on cryptocurrency and bitcoin on Bloomberg TV Monday in an interview with Carlyle Group founder David Rubenstein.<\/p>\n

Responding to the question of whether he is a believer in cryptocurrency, Paulson affirmed: \u201cNo, I\u2019m not.\u201d<\/p>\n

He elaborated: \u201cI would say that cryptocurrencies are a bubble. I would describe them as a limited supply of nothing. So to the extent there\u2019s more demand than the limited supply, the price would go up. But to the extent the demand falls, then the price would go down. There\u2019s no intrinsic value to any of the cryptocurrencies except that there\u2019s a limited amount.\u201d The billionaire hedge fund manager added:<\/p>\n

Cryptocurrencies, regardless of where they\u2019re trading today, will eventually prove to be worthless. Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn\u2019t recommend anyone invest in cryptocurrencies.<\/p>\n

<\/p>\n

Paulson was further asked \u201cwhy not put a big short of some type on cryptocurrencies\u201d since he believes that they will become worthless.<\/p>\n

He explained: \u201cThe reason we shorted subprime in size was because it was asymmetrical \u2014 shorting a bond at par that has a limited duration that trades at a 1% spread of Treasuries. So you can\u2019t lose more than the spread in the duration.\u201d He continued:<\/p>\n

In crypto, there\u2019s unlimited downside. So even though I could be right over the long term, in the short term, I\u2019d be wiped out. In the case of bitcoin, it went from $5,000 to $45,000. It\u2019s just too volatile to short.<\/p>\n

What do you think about John Paulson\u2019s comments on bitcoin and cryptocurrencies? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nMarkets and Prices, john paulson, john paulson bitcoin, john paulson crypto, john paulson cryptocurrencies, john paulson cryptocurrency, short bitcoin, short crypto, subprime mortgage<\/p>\n","protected":false},"excerpt":{"rendered":"

Billionaire hedge fund manager John Paulson, famed for making a fortune betting against the U.S. housing market, says that cryptocurrencies are a bubble that will prove to be \u201cworthless.\u201d While he sees unlimited downside to crypto, he will not short bitcoin, however. \u201cEven though I could be right over the long term, in the short…<\/p>\n","protected":false},"author":0,"featured_media":11509,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-11508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11508"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=11508"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/11509"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=11508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=11508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=11508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}