{"id":470487,"date":"2021-08-30T23:00:53","date_gmt":"2021-08-30T23:00:53","guid":{"rendered":"https:\/\/ktsl888.com\/?p=470487"},"modified":"2024-06-11T08:50:42","modified_gmt":"2024-06-11T08:50:42","slug":"billionaire-says-bitcoin-is-worthless","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/billionaire-says-bitcoin-is-worthless\/","title":{"rendered":"Billionaire Who Predicted 2008 Housing Crash Says Bitcoin Is \u201cWorthless\u201d"},"content":{"rendered":"
\u201cBitcoin is a bubble\u201d is something that has been thrown around a lot ever since the last bull run began in 2017. A lot of prominent personalities in the finance industry took this stand when the digital asset hit its then all-time high of $19K. The bear market that followed seemed to validate this for the next few years. Then the bull run of 2020 started and a lot of those sentiments were put on the back burner. But now, John Paulson has come to hit the market with the same thing.<\/p>\n
Related Reading |\u00a0Here\u2019s How Much Your $1,200 Stimulus Check Would Be Worth In Various Cryptocurrencies In 2021<\/a><\/strong><\/em><\/p>\n Over a decade ago, billionaire John Paulson had bet against the housing market. Paulson had reportedly made his fortune from carefully placed bets against the housing market in 2007. The billionaire had used credit default swaps<\/a> to bet against the housing market, which looked to be in its subprime. By 2010, Paulson himself had made $4.9 billion from his bet. The complete total Paulson made for himself and his clients from shorting the market in 2007 came out to about $20 billion, making it one of the biggest fortunes ever made in the history of Wall Street.<\/p>\n Paulson was on Bloomberg\u2019s Wealth with David Rubenstein to talk about trading and financial markets. Paulson remained bullish on gold, as he has been for a number of years now, which he believed is coming into its moment. The billionaire although had nothing good to say about cryptocurrencies. Cryptos received harsh criticism from Paulson, where he stated, \u201cI am not a believer in cryptocurrencies.\u201d<\/p>\n Related Reading |\u00a0Deloitte Survey Shows 76% Of Finance Execs Think Physical Money Is Nearing Its End<\/a><\/strong><\/em><\/p>\n Paulson then went on to call cryptocurrencies a \u201cbubble.\u201d Paulson attributed the value of cryptocurrencies to the high demand for them. One could argue that this is the way economics works. Demand always plays the biggest role in how something is valued.\u00a0 <\/span>Paulson also explained that there were way too many downsides to bitcoin. He added that the digital asset was just too volatile too short. Hence, the short methods<\/p>\n \u201cI would describe cryptocurrencies as a limited supply of nothing. There is no intrinsic value to any of the cryptocurrencies.\u201d<\/p>\n<\/blockquote>\n Although Paulson spoke critically on other investments like SPACs, he was harshest on bitcoin. The billion said that cryptocurrencies \u201cwill eventually prove to be worthless.\u201d<\/p>\n Paulson\u2019s track record after his famous 2007 short has not been noteworthy. Although his assets under management grew after the notoriety he gained from that trade, it soon dwindled down as investors pulled out their money. In 2019, Paulson went from managing $38 billion to only about $9 billion assets under management, at this point mostly managing his own money. So Paulson turned his hedge fund into a family office.<\/p>\n <\/p>\nBitcoin Has No Intrinsic Value<\/h2>\n
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Gold Versus BTC<\/h2>\n
BTC has surpassed gold year over year | Source: BTCUSD on TradingView.com<\/a><\/pre>\n