Paulson Described Cryptocurrencies as Bubbles

Paulson described cryptocurrencies as bubbles. Famous fund manager John Paulson knew about the 2008 crisis.

John Paulson, the famous hedge fund manager who shorted the market during the 2008 real estate crisis and thus earned him and his investors big money, spoke to Bloomberg Television. Stating that cryptocurrencies are worthless bubbles, Paulson praised gold and cited the precious metal as a solid safe haven for inflation. Paulson made the following statements about gold: “We know that gold moves very well in terms of inflation. We saw a parabolic rise in gold when there was a double-digit inflation rate in the 70s. So why did gold rise parabolic at that time? This is because it has a very limited supply. If you buy long-term Treasury bonds with a yield of 2% and interest rates increase by 5%, the value of those bonds decreases. In addition, if you have cash in the bank and the interest rate is zero, if inflation is 4%, the value of your money will decrease gradually. When inflation rises, the best place to go is gold. Here, too, a wave of investment in gold begins. The higher the investment, the harder the parabolic rise.” The 65-year-old famous investor, who knew beforehand the 2008-2009 crisis, which also led to the birth of Bitcoin, stated that he expected the pressure on the dollar to increase and the inflation rates to increase in the program he attended. Paulson noted: "The best indicator of inflation is the money supply. We have seen in the past that the coins minted do not enter the market and do not participate in the supply. This time, money was included in the money supply. The supply of money has increased by 25% since last year. That's why I expect inflation beyond expectations."

"Cryptocurrencies Have No Value..."

Stating that cryptocurrencies have no real value and that these assets are completely balloons, Paulson answered the question why he did not short Bitcoin, said, "It is too volatile to even short." Paulson continued: "I don't believe in cryptocurrencies at all. These are all balloons. I see cryptocurrencies as 'nothing' with limited supply. It goes up when there is demand, but it goes down when demand decreases. It has no real value. Downgrades can be unlimited in cryptocurrencies. Why can't I short? Because even if I'm right in the long run, it can go from $5k to $45,000 in the short run. So even if I'm right, I could lose my money. Too volatile to even short."