Billionaire investor John Paulson says crypto has ‘no intrinsic value.’
John Paulson, a billionaire hedge fund manager who made a fortune betting against the subprime mortgage market in 2007, has spoken out against cryptocurrencies – claiming they have no intrinsic value.
Paulson’s comments come as bitcoin and other cryptocurrencies continue to experience wild price swings – with one unit of bitcoin recently trading at over $19,000. Some experts say Paulson’s views could be hindering mass adoption of cryptocurrencies – while others say his comments reflect the current market conditions.
In an interview with the Wall Street Journal, Paulson said that he does not have faith in cryptocurrencies because they are not backed by anything tangible. He said there is no guarantee that cryptocurrencies will be around in five years and that their value is based more on speculation than anything else. Paulson is not the only person to make this critique of cryptocurrencies; many experts believe that they are nothing more than a digital Ponzi scheme.
What this means for the future of crypto
John Paulson, the billionaire investor and former hedge fund manager who predicted the 2008 stock market crash, has issued a statement declaring that he does not believe in the intrinsic value of cryptocurrencies like Bitcoin. His comments come as regulators worldwide grapple with how to respond to digital assets that have become increasingly popular in recent years.
In an interview with Bloomberg TV on Tuesday, Paulson said that while he understands the appeal of cryptocurrencies, he doesn’t believe they have any real value. He added that he believes their success results from speculation rather than any underlying economic or technological reason. This contrasted sharply with his earlier views on digital assets when he called Bitcoin “a fantastic opportunity” in 2015.