‘There’s a finite quantity of nothing!’ Cryptocurrencies, according to investor Paulson, will become worthless.
A US INVESTOR believes that cryptocurrencies, such as Bitcoin, are worthless and that individuals should instead put their money into gold.
During the housing boom in 2008, hedge fund billionaire John Paulson gained a fortune. By correctly predicting the 2008 financial catastrophe, the investor made $20 billion. He gained billions at a time when many Americans were losing their homes and jobs.
Cryptocurrencies will be worthless in the future, according to Paulson, who spoke with Bloomberg Wealth’s David Rubenstein.
“Once the euphoria wears off, or liquidity runs out, they will go to zero,” he warned. Cryptocurrencies are not something I would advise anyone to invest in.
“I’d characterize them as a finite amount of nothing.
“As a result, if there is more demand than there is limited supply, the price will rise. However, if demand declines, the price will fall as well.
“There is no fundamental value to any cryptocurrency other than the fact that there is a finite amount.”
With the likelihood of growing inflation when the economy rebounds from the Covid-19 lockdowns, Paulson thinks that investing in gold may be more advantageous.
“We feel that gold does exceptionally well in times of inflation,” he remarked.
“People attempt to break free from a fixed income. They are attempting to avoid paying any money. And gold is the sensible choice.
“However, the supply and demand imbalance drives gold to climb since the amount of money wanting to shift out of cash and fixed income dwarfs the amount of investable gold.”
“The money supply increased by nearly 25% last year, and money supply is the best indication of inflation,” he continued.
“As a result, I believe inflation will be much higher than current expectations.”