(NewsBroadcast.com) – Cryptocurrency has been the hot commodity in the investing world, with some people who invested early in the digital asset reaping the benefits of its quick takeoff. But one billionaire believes the crypto bubble will soon burst, leaving its users with nothing for their efforts.
In an interview published on Sunday, August 29, John Paulson, the hedge fund manager who made over $20 billion when the housing bubble burst before the Great Recession, told Bloomberg that crypto would “eventually prove to be worthless.” While he did not give a timeline for his prediction, Paulson emphasized he wouldn’t recommend it to clients.
Bloomberg shared more of the interview on Twitter:
NEW: "I would say that cryptocurrencies are a bubble. I describe them as a limited supply of nothing."
Billionaire investor John Paulson says crypto holders should be prepared to lose everything.
Read The Big Take ⬇️ https://t.co/OnhEUhSVrl
— Bloomberg (@business) August 30, 2021
Paulson highlighted how there is “no intrinsic value to any of the cryptocurrencies,” which leaves them vulnerable. However, that is also what has made them so valuable over the past few years at different times.
Typically, when major players like Elon Musk comment on cryptocurrencies, the market typically responds quickly to their whims. With this latest recommendation, though, the markets will have to wait and see if investors trust Paulson’s words, or if now is actually the time to invest in cryptocurrencies.
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