No doubt that John Paulson had been a successful hedge fund manager who had earned significant fortune in the US, however, he doubts Bitcoin and believes that all cryptocurrencies are worthless but surviving because of a handful individuals who are pushing them by claiming them to be the “future of currency”. He acknowledges the fact that he might be wrong about Bitcoin and the future of cryptocurrencies in the short span, however, in the long run, he’d be the winner.
Multi-billionaire John Paulson’s reputation may have been famed for being one of the most successful hedge fund manager. However, the rationale behind his popularity is not fund management skills alone. Instead most of his popularity is due to him betting mainly against the national housing markets of the US.
He is currently associated with the Paulson & Co. where he is serving the company as its Portfolio Manager as well as the President. This very company attracted global attention in 2007 when it successfully betted against the housing markets in the US. Paulson’s farsightedness allowed him to foresee the mortgage crisis at the time.
Apprehending an opportunity, he immediately focused his attention towards securities which were usually backed by mortgages. Thereafter, he put huge amounts of monies into credit default swaps which, resultantly, allowed him to earn millions of dollars. Since then, he is regarded amongst the game-changing business entrepreneur who is capable of influencing the biggest market of the world.
Recently, he was called for an interview by David Rubenstein, the founder of Carlyle Group, at a Bloomberg TV program. In this program, he gave his viewpoint over Bitcoin and his own version of crypto future. He was initially asked a question whether he is amongst one of those people who strongly have faith in crypto. In response to the question he responded that he is not crypto believer at all.
Paulson then explained that to him crypto is nothing more than a simple “bubble” waiting to be burst at any time. In fact he claimed that according to his personal view crypto involves an imaginary supply of fictional assets, which do not exist at all.
In a single day the value fluctuates up and down throughout the day multiple times in one minute. But the value threshold is determined depending on the increase and decrease of a cryptocurrency. If the demand is less then so is the value and in case the demand rises so is the value. There is no logical sense at all present in determining the intrinsic value of not even a single cryptocurrency.
He added that irrespective of high in demand present, crypto is going to be “worthless” at some point in time in future. At the end he suggested that he wouldn’t advise any investor to go for cryptocurrencies because it would be ill-advised and foolish.