John Paulson described digital assets as a bubble and recommended not to invest in them
Investor John Paulson, whose fortune Forbes estimates at $3.5 billion, in an interview with Bloomberg called the cryptocurrency a “bubble”. The digital asset market “will eventually turn out to be useless,” he believes. Paulson recommended that investors not invest in cryptocurrency.
“Cryptocurrencies are a bubble. I would characterize them as a limited supply of nothing. If the demand is greater than the limited supply, the price will rise. But if the demand falls — the price will also fall. None of the cryptocurrencies has an intrinsic value, ” Paulson explained.
John Paulson is the best private asset manager of 2007 according to Alpha magazine. At the end of the year, the Paulson fund managed to earn $3.7 billion, despite the mortgage crisis and the collapse of the American market.
In January, Bank of America chief investment strategist Michael Hartnett called bitcoin “the worst of the bubbles.” According to Hartnett, the rapid growth of the main cryptocurrency is a consequence of speculative mania. Hartnett compared the dynamics of the bitcoin price with past market bubbles. For example, with the events on the gold market in the late 1970s, when the precious metal rose in price by 400%.