Despite the fact that cryptocurrency is well-known for being the market's top trending commodity at the moment, it is receiving a lot of criticism from billionaire hedge fund manager John Paulson.
Even though crypto is known to be quite famous for being the market’s hot commodity at the present it is receiving a lot of flak from Billionaire hedge fund manager John Paulson who called it a “bubble” which means he referred to crypto as “worthless”.
Paulson while in conversation in an episode of ‘Bloomberg Wealth with David Rubenstein’ which was aired on August 30 said there is no natural value or element connected with crypto except for a “limited amount.” The segment is way “too volatile” he said by pointing out that Bitcoin went from US$5,000 to US$45,000 within a very short period of time. “Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless. Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies,” said Paulson. Who recently earned a spot for betting against the US housing market more than a decade ago.
“I would say that cryptocurrencies are a bubble. I would describe them as a limited supply of noting,” he said. He also added that the price would only increase only if the demand is more than limited supply. However, crypto which is still not considered as legal in any important economy have achieved huge interest over the last years. At the present moment the hype over cryptos was increased thanks to the help of Elon Musk, the founder of electric vehicle maker Tesla.
Musk’s firm had increased Bitcoin’s value by declaring in March that it is willing to accept payment in form of cryptocurrency. nonetheless, Tesla didn’t stand up to its word and reversed its decision in May.