John Paulson — a billionaire investor who earned his fame as a subprime short investor — fired up some flak Bitcoin(CRYPTO: BTC) and the cryptocurrency market, saying he wouldn’t even short it due to the volatility.
What happened: During a recent Bloomberg interview, Paulson promoted gold, mocking the idea that Bitcoin and cryptos are a store of value because they are a “limited supply of nothing” and have “no intrinsic value.”
He believes that the volatility of the crypto market is a good reason not to invest in it alone.
The subprime Shorter said he would “recommend anyone to invest in cryptocurrencies. He has even gone so far as to say that “cryptocurrencies, no matter where they trade today, will ultimately prove worthless. Once the exuberance is gone, or the liquidity dries up, they go to zero.”
What else: Speaking of SPACs, he said he believes they will be a lost proposition in most cases.
Talking about the opportunities in the broader market, Paulson said he doesn’t see any trading opportunities with an advantageous asymmetry between profit versus loss potential, similar to what he saw in his subprime short.
Still, he recommended buying gold, expecting that rising inflation would cause the metal to appreciate in value because it’s considered a safe haven.
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