“Bitcoin goes to zero and cryptos are a useless bubble,” says investor turned billionaire with housing crisis

John Paulson is a recognized name within the investment and financial market, having won a hefty sum when he bet against the housing market during the financial bubble of 2008. Paulson’s opinion of the next big opportunity is something valued by many, and for him “cryptocurrencies are a useless bubble.”

The famous investor became very famous after betting against Subprime stocks during the housing bubble more than a decade ago. Your bet wasn’t small either, with Paulson making about $20 billion for him and other investors in the Carlyle Group.

In an interview with Bloomberg, Paulson claimed that now 14 years after the second biggest US crisis, he is again seeing signs of excessive speculation. A common concern among other market experts.

useless bubble

Another very common opinion of Paulson is that he believes that the rapid expansion and issuance of money can continue to increase the rate of inflation well above expectations. For him, gold is ready for its bullish moment and Bitcoin and cryptocurrencies are not worth the investment.

He stated that investment in SPACs it is a “loss proposition” and has no positive opinion about cryptocurrencies and the possibility of investing in them.

“Cryptocurrencies are a bubble that will eventually prove useless. I would not recommend anyone investing in cryptocurrencies.”

However, it is worth mentioning that during the interview he made it clear that he is not taking positions against the cryptocurrency market.

For him to trade in shorts against the cryptomarket is a big mistake. He explained that he doesn’t bet against this sector because there is no drop limit.

“In the cryptomarket there are unlimited downfalls. So even if I can get it right in the long term, in the short term I would be liquidated. In the case of Bitcoin, it went from $5,000 to $45,000. It’s too volatile to bet against.”

As you can imagine, the opinion against the cryptomarket does not please the investors in the sector who support this technology and digital currencies.

The Bloomberg article itself highlights that Paulson’s big bet is no longer as impressive for his investment history, with his company dropping from $38 billion in 2011 to $9 billion in 2019.

As you can imagine, only the future can tell who will be more right, the cryptomarket investors or the investor who became a billionaire during a crisis.