Billionaire John Paulson Calls Cryptocurrencies ‘Worthless’ but Says He Won’t Short Them

“I wouldn’t recommend anyone invest in cryptocurrencies,” the noted hedge fund manager said in an interview published on Monday.

Aug 30, 2021 at 1:41 p.m. UTC

Updated Aug 30, 2021 at 7:57 p.m. UTC

Billionaire hedge fund manager John Paulson remains strongly opposed to investing in cryptocurrencies, calling them a “bubble” and saying that “regardless of where they’re trading today, [cryptocurrencies] will eventually prove to be worthless.”

“Once the exuberance wears off or liquidity dries up, they will go to zero,” Paulson said in an interview with Bloomberg Wealth. “I wouldn’t recommend anyone invest in cryptocurrencies.”
When asked why he doesn’t short cryptocurrencies, however, Paulson said prices are simply “too volatile” to short cryptos effectively. “In crypto, there’s unlimited downside,” Paulson said. “So even though I could be right over the long term, in the short term, I’d be wiped out.”
Paulson is the hedge fund manager who made a fortune betting against the U.S. housing market roughly 14 years ago.
Paulson said he’s continuing to buy gold in anticipation of rising inflation as the money supply expands.

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