Investment manager

Investment Manager John Paulson Says Cryptos Will Turn Out “Worthless”

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It’s a safe bet that billionaire John Paulson won’t be joining fellow billionaires Mark Cuban and Elon Musk on the cryptocurrency train anytime soon.

See: Mark Cuban Has Less Than $ 500 In Dogecoin Despite Team Participation In Crypto
Find: Yes, you can buy a Tesla with Dogecoin – but not from Tesla itself

In an interview with Bloomberg TV on Monday, Paulson called the crypto “a limited supply of nothing,” Blockworks reported. The founder of New York-based investment management firm Paulson & Co. didn’t stop there, either.

“Cryptocurrencies, regardless of where they trade today, will eventually prove to be worthless,” Paulson said during an episode of Bloomberg Wealth with David Rubenstein. “Once the exuberance wears off or the cash runs out, it will go to zero. I would not recommend anyone to invest in cryptocurrencies.

Paulson has experience with overexploited assets. He made headlines in 2007 when he used credit default swaps to gamble against the US subprime mortgage market. As a result of those bets, the funds Paulson managed raked in $ 15 billion that year, while he walked away with around $ 4 billion.

Paulson said in the Bloomberg interview that his company bypassed subprime loans because the rise far outweighed the fall. However, he also said that the crypto is too volatile to be short.

“In crypto, there is an unlimited downside,” he said. “So even if I could be right in the long run, in the short run I’d be devastated. “

Paulson’s take on crypto contrasts sharply with that of other billionaires. Paul Tudor Jones, founder and CIO of Tudor Investment Corporation, said in June that Bitcoin offers a good way to fight inflation and diversify portfolios. He recommends allocating 5% of a wallet to Bitcoin.

And as GOBankingRates previously reported, Tesla CEO Elon Musk and Dallas Mavericks owner Mark Cuban have come up with a bullish approach to Dogecoin.

See: Compare Dogecoin, Baby Doge and Shiba Inu: is there one to watch out for?
Find out: AMC will accept Bitcoin by the end of the year, but some experts are not convinced by the concept

Meanwhile, a survey released by Intertrust Group found that around one in six hedge fund managers plan to invest more than 10% of their holdings in cryptocurrencies over the next five years.

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This article originally appeared on Investment Manager John Paulson Says Cryptos Will Turn Out ‘Worthless’

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