Crypto is a worthless bubble, thinks shorter subprime billionaire John Paulson

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John Paulson, a billionaire investor who gained fame as a short-term subprime investor, criticized Bitcoin (CRYPTO: BTC) and the cryptocurrency market, saying he wouldn’t even sell it because of its volatility.

What Happened: During a recent Bloomberg interview, Paulson promoted gold, poking fun at the idea that Bitcoin and cryptos are a store of value because they are a limited supply of nothing and have no intrinsic value.

He believes the volatility of the crypto market is a good reason to avoid investing in it alone.

The shortest subprime mortgagee said he would “not recommend anyone to invest in cryptocurrencies. He went so far as to say that” cryptocurrencies, regardless of where they are traded today ‘ hui, will eventually prove to be worthless. Once the exuberance wears off or the cash runs dry, it will turn to zero.

What else: Speaking of SPACs, he said he thought they would be a losing proposition in most cases.

Speaking of opportunities in the wider market, Paulson said he doesn’t see any business opportunities with a beneficial asymmetry between the potential for gain and loss similar to what he saw in his subprime sale.

Nonetheless, he recommended buying gold, expecting that rising inflation would cause the metal to appreciate as it is considered a safe-haven asset.

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