Famous Billionaire Throws Bitcoin In The Trash and Says "I'm Choosing This"! - News-Credit-Mortgage-Coin


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Monday, August 30, 2021

Famous Billionaire Throws Bitcoin In The Trash and Says "I'm Choosing This"!


Famous billionaire John Paulson believes that cryptocurrencies, including Bitcoin, are not worth such an exaggeration and argues that cryptocurrencies are a waste of time. That's why he doesn't advise investors to invest in these digital assets. As moneyonezero.com, we have compiled the views of 65-year-old billionaire investor John Paulson, who shared his thoughts on good investments with a news channel, on cryptocurrencies.

John Paulson: I do not recommend investing in Bitcoin and other cryptos

Billionaire investor John Paulson made his fortune more than a decade ago by betting against the US housing market. The billionaire seems confident in his current investment choices. John Paulson emphasizes that he is not a fan of cryptocurrencies. In fact, according to him, all cryptos, including Bitcoin, are a bubble. He elaborates on this view by saying that cryptos are nothing limited. For example, he states that asset prices will rise until there is high demand over limited supply. However, he says, when demand falls, the price will also fall.

John Paulson believes that cryptos have no real intrinsic value and are only popular due to limited supply. As a result, he says for him, no matter what prices cryptos are trading at today, they will all eventually fall to zero. He states that this will happen as liquidity dries up or popularity wanes.

So what is the secret of successful investments?

Based on that conversation, when John Paulson was asked why he didn't take advantage of the big sell-offs on crypto, he replied that the secret behind his wealth was betting on asymmetric transactions. Betting on an asymmetrically shorted subprime guarantees high returns and almost no loss, the billionaire says.

In contrast, John Paulson argues that Bitcoin and other cryptos always have an unlimited downside, and therefore, whatever long-term gains are will certainly be wiped out when it comes to short investment. Citing the example of Bitcoin (BTC) flying from $5,000 to $45,000, he says it is too volatile to short.

Never mind bitcoin and crypto, gold is enough for me

John Paulson invested a lot of money in gold investments after his failed short film. This earned him the title of 'Golden Bug'. To date, John Paulson believes that gold is a great investment that always comes up in times of inflation. Usually, when inflation hits, people look for investments that will push them out of cash options, according to the billionaire.

According to him, gold always stands strong in such situations. John Paulson argues that although gold also has its ups and downs, such as supply and demand imbalances, it still holds more promise than cryptos, and he believes this is true since the gold market is not as volatile as the crypto market.

“Actually, cryptos have no value”

As a result, despite John Paulson's arguments, most traders disagree with calling cryptos worthless. At a time when the economy was completely hit by the Covid-19 pandemic, cryptos have emerged strongly. Most investors have turned to cryptos during this time. When the economy started to fail them, cryptos became their saving grace.

One of John Paulson's main arguments is that cryptos have no value. According to crypto experts, this is not true, most cryptos have a purpose and therefore also have solid use cases. Experts say it is unlikely that all cryptocurrencies will eventually drift away from demand, as many of them will retain their value and fulfill their purpose. So, while cryptos may not seem like a good investment in the eyes of an investment billionaire, it has certainly managed to grab the attention of many other investment giants. These include Elon Musk, Mark Cuban, Grayscale Investments, MicroStrategy and many more.

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