Property billionaire John Paulson has branded cryptocurrencies as “a worthless bubble”.
More than 14 years ago, Paulson decided to place his bets against the US housing market, and since then, people keep asking him about his next big trade.
But, after a recent Bloomberg interview, it is unlikely that advice will turn to Bitcoin.
Paulson said he was worried about inflation and rising prices but that he thinks this could be a great time for gold as a commodity worth investing in.
However, the billionaire certainly doesn’t have such a high opinion of cryptocurrencies.
“I wouldn’t recommend anyone invest in cryptocurrencies,” he warned.
“The last time gold went parabolic was in the 1970s when we had two years of double-digit inflation.”
Cryptos ‘have no intrinsic value’
He added that cryptocurrencies were a bubble or “a limited supply of nothing” that has no intrinsic value.
“Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless,” he said.
“Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies.”
Paulson, who became famous for his shorting subprime said Bitcoin was just too volatile to short and admitted he still believes in more traditional types of investment such as gold or real estate.
“In crypto, there’s an unlimited downside,” he complained.
“So even though I could be right over the long term, in the short term, I’d be wiped out. In the case of Bitcoin, it went from $5,000 to $45,000. It’s just too volatile to short.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.