John Paulson described digital assets as a bubble and recommended not investing in them.
Investor John Paulson, whose fortune is estimated by Forbes at $ 3.5 billion, in an interview with Bloomberg called the cryptocurrency a “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 demand falls, the price will also fall. None of the cryptocurrencies have intrinsic value, ”explained Paulson.
John Paulson is Alpha Magazine’s 2007 Best Private Asset Manager. At the end of the year, 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 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%.
