September 26, 2021

Billionaire investor calls cryptocurrency "limited supply of nothing"

John Paulson described digital assets as a bubble and recommended not investing in them.

Investor John Paulson, whose fortune is Forbesestimates at $ 3.5 billion, in an interview with Bloomberg called the cryptocurrency "bubble". The digital asset market "will end up being useless," he said. Paulson advised investors not to invest in cryptocurrency.

“Cryptocurrencies are a bubble.I would describe 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 have intrinsic value, ”explained Paulson.

In January, the chief investment strategist of the Bank ofAmerica Michael Hartnett called Bitcoin "the worst of the bubbles." According to Hartnett, the meteoric rise of the main cryptocurrency is the result of speculative mania. Hartnett compared bitcoin price dynamics to past market bubbles. For example, with the events in the gold market in the late 1970s, when precious metals rose in price by 400%.