Cryptocurrencies like Bitcoin are ‘apolitical’ says financial expert
Sign up to receive our rundown of the day’s top stories direct to your inbox
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
John Paulson, the hedge fund billionaire made a fortune in 2008 during the housing bubble. The investor earned $20bn by predicting the 2008 financial crisis. He made billions at a time when many Americans lost their homes and were made unemployed.
Paulson told Bloomberg Wealth with David Rubenstein that cryptocurrencies will be worth nothing in the future.
He said: “Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies.
“I would describe them as a limited supply of nothing.
“So to the extent there’s more demand than the limited supply, the price would go up. But to the extent the demand falls, then the price would go down.
John Paulson and Trump (Image: PA)
John Paulson (Image: PA)
“There’s no intrinsic value to any of the cryptocurrencies except that there’s a limited amount.”
Paulson also suggests investing in gold could be more beneficial with the possibility of inflation rising when the economy recovers from Covid-19 lockdowns.
He said: “We believe that gold does very well in times of inflation.
“People try and get out of fixed income. They try and get out of cash. And the logical place to go is gold.
Cryptocurrency in Europe (Image: Express)
Cryptocurrency (Image: Express)
“But because the amount of money trying to move out of cash and fixed income dwarfs the amount of investable gold, the supply and demand imbalance causes gold to rise.”
He added: “The money supply was up about 25 percent last year and the best indicator of inflation is money supply.
“So, I think we have inflation coming well in excess of what the current expectations are.”