Today, cryptocurrencies are one of the most talked-about topics in many circles. With the prices skyrocketing in recent years, many people wonder if cryptocurrency investment is worth it. Well, famed billionaire investor John Paulson has weighed in on the topic that crypto is a bubble that will eventually drop to zero.
Yesterday, famed investor and billionaire John Paulson was interviewed by Bloomberg TV. He speculated that cryptocurrencies are in a bubble & their value is in the gutter. He predicts that they will soon be worth nothing, in addition to having all sorts of security flaws.
I think that cryptocurrency is a bubble. Regardless of how much they cost today, they will ultimately prove worthless. The price will drop when the excitement ends or flows dry. I would not recommend buying any cryptocurrency.
Paulson was referring to the fact that any physical assets do not back many cryptocurrencies. There will only be a limited supply of these coins, which could lead to their value skyrocketing.
He continued to say that he won’t short cryptocurrencies because they’re too volatile. Paulson said, “In any given 24 hours, you could have a 20 percent move in either direction. It is not for the faint of heart.”
John Paulson Not alone in believing bitcoin is a bubble
Bitcoin is the world’s most popular cryptocurrency, one that has drawn media attention for its dramatic price swings. The sudden increase in interest among investors who are purchasing bitcoins has led many to call it a bubble. Many billionaire, including Warren Buffett, believe that bitcoin is a speculative bubble rather than a legitimate currency. They think it has no intrinsic value. There is no government backing it up and no gold standard to provide stability.
However, the digital currency continues to rise in value and now trades at over $46,754 per bitcoin, up from under $1,000 at the beginning of 2017. There are currently 16.7 million bitcoins in circulation with a maximum of 21 million coins expected to be mined.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.