Sunday, September 19, 2021
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Cryptos could also go to zero, this billionaire warns

© Reuters – The one that still failed to rebound above the critical $ 50,000 mark fell to a low below $ 47,000 during the recent correction.

After a high of $ 48,740 around 10 p.m., it hit a low of $ 46,725 at 2 a.m. As a result, the world’s most important crypto currency in terms of market capitalization lost over 4% of its value within 4 hours.

There are no concrete explanations for Bitcoin’s recent weakness. But the statements of billionaire John Paulson in an interview with Bloomberg yesterday attracted attention in the crypto market.

“Cryptocurrencies, no matter where they are traded today, prove to be worthless sooner or later. As soon as the euphoria subsides or liquidity runs dry, they will sink to zero. I can only advise anyone against investing in cryptocurrencies,” said Paulson, President and portfolio manager at the US investment management company Paulson & Co.

When asked why he didn’t just short the bitcoin, Paulson replied that given the extreme volatility of bitcoin, it was not worth shorting. Instead, he advised gold bars as a store of value. The reason is the “very limited amount of investable”.

According to Paulson, investors get their money out of fixed income and money market paper when inflation picks up and then seek refuge in the only logical goal, which is gold.

In this regard, Paulson also scoffed at the idea that Bitcoin and cryptocurrencies could be a store of value due to their limited supply. In his opinion, they are a “limited offer of nothing” because cryptos have “no intrinsic value”.

As a reminder, Paulson made his fortune betting against the US real estate market before it collapsed during the infamous subprime crisis.

As far as Bitcoin development is concerned, the mild correction since yesterday evening is not yet sufficient to call into question the overall positive trend. A slide below the smoothing of the last 200 days (currently at $ 46,080) would, however, represent a negative course. The next noteworthy support would then be in the area around $ 44,000.

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Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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