John Paulson, the billionaire who famously shorted the U.S. subprime mortgage bubble in 2008, has called crypto a bubble that will “eventually prove to be worthless” in an interview with Bloomberg TV.
- “I wouldn’t advise anyone to invest in cryptocurrencies,” said the 65-year-old, who has consistently backed gold as a store of value. Predicting inflation rates may rise above expected levels due to the increasing cash supply, Paulson said gold is set to have its moment.
- Despite rising inflation levels in the past year, Bitcoin has outperformed gold, so Paulson’s comments are likely to raise some criticism from supporters within the crypto industry. After hitting its all-time high of US$2,063 in August 2020, gold has struggled to maintain that price and has been steadily decreasing since then. It was trading at US$1,812 at press time, according to Monex.com.