John Paulson — a billionaire investor who earned his fame as a subprime short investor — shot some flak at Bitcoin(CRYPTO: BTC) and the cryptocurrency market, saying that he would not even short it because of its volatility.
What Happened: During a recent Bloomberg interview, Paulson promoted gold, deriding the idea of Bitcoin and cryptos being a store of value since they are a “limited supply of nothing” and have “no intrinsic value.”
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He believes that the crypto market's volatility is a good reason to avoid investing in it on its own.
The subprime shorter said that he wouldn't "recommend anyone invest in cryptocurrencies. He has gone as far as to say that "cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless. Once the exuberance wears off, or liquidity dries up, they will go to zero.”
What Else: Talking about SPACs, he said that he believes that they will be a losing proposition in most cases.
When talking about the opportunities in the broader market, Paulson said that he does not see trade opportunities with an advantageous asymmetry between the gain versus loss potential similar to what he saw in his subprime short.
Still, he recommended buying gold, expecting increasing inflation to result in the metal appreciating thanks to it being regarded as a safe haven asset.