Billionaire hedge fund manager John Paulson remains strongly opposed to investing in cryptocurrencies, calling them a “bubble” and saying that “regardless of where they’re trading today, [cryptocurrencies] will eventually prove to be worthless.”
- “Once the exuberance wears off or liquidity dries up, they will go to zero,” Paulson said in an interview with Bloomberg Wealth. “I wouldn’t recommend anyone invest in cryptocurrencies.”
- When asked why he doesn’t short cryptocurrencies, however, Paulson said prices are simply “too volatile” to short cryptos effectively. “In crypto, there’s unlimited downside,” Paulson said. “So even though I could be right over the long term, in the short term, I’d be wiped out.”
- Paulson is the hedge fund manager who made a fortune betting against the U.S. housing market roughly 14 years ago.
- Paulson said he’s continuing to buy gold in anticipation of rising inflation as the money supply expands.
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