Fifteen years after the US real estate bubble, John Paulson predicts the crypto bubble

At 65, John Paulson, the manager who rose to fame and fortune during the bursting of the US real estate bubble in 2007, sees bitcoin and cryptos as the new instruments for the massive destruction of financial wealth. “I would not recommend anyone to invest in cryptocurrencies (cryptos), which have no value. It’s a bubble and their value only goes up because there is a limited supply. Once the exuberance wears off or the liquidity dries up, they will converge to zero, ”he said on Bloomberg TV.

These recurring criticisms of the lack of fundamental value in bitcoin and cryptos (no dividends, volatility, bubbles, etc.) are mainly made by alternative managers invested in equities. Hedge funds positioned in all major markets, such as Paul Tudor Jones, Ray Dalio (Bridgewater) and George Soros’ family office, have started or will begin to integrate bitcoin into a diversified portfolio. The global crypto market has gained $ 1,000 billion this year, to $ 2.065 billion.

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