John Paulson, who earned a fortune for himself and investors by shorting subprime mortgage bonds during the 2008-2009 financial crisis in the United States, <a href="https://www.bloomberg.com/news/articles/2021-08-30/is-bitcoin-a-good-investment-billionaire-paulson-says-crypto-worthless-bubble" target="_blank" rel="nofollow noopener">told </a>Bloomberg TV that he advises against investing in cryptocurrency since it is nothing more than a bubble.
<h2>John Paulson thinks Digital Currencies are a Bubble &amp; Endorses Gold As An Inflation Hedge</h2>
Paulson earned a staggering $20 billion by shorting subprime call options during the housing crisis more than a decade ago. 

He is now 65 years old and believes that the present increase of USD printings will drive inflation rates far higher than anyone anticipates and that gold is now a hedge against inflation.

In a Bloomberg TV interview with Carlyle Group co-founder David Rubenstein, he predicted that cryptocurrencies will eventually lose their value.

After his holdings fell to $9 billion in 2019 from almost $40 billion in 2011, he converted his hedge fund <a href="https://www.reuters.com/article/us-paulson-hedgefund/hedge-fund-celebrity-john-paulson-shuts-firm-to-become-a-family-office-idUSKBN2426MF" target="_blank" rel="nofollow noopener">Paulson &amp; Co. Inc. into a family office</a> and has been engaged only in investing, primarily managing his own funds.

After making billions, Paulson bought a lot of gold and gold futures and, according to some, became a "gold bug." 

He believes that, despite the <a href="https://www.cryptoknowmics.com/news/gold-prices-plunge-below-1700-oz-yet-bitcoin-holds-strong/" target="_blank" rel="nofollow noopener">recent decline</a> in the price of gold to $1,700, it is still an excellent hedge during a period of inflation, because it surged back in 1970 when the globe experienced such inflation.

He justifies the value of gold by stating that there is a relatively limited quantity of investible gold.
<h2>Crypto Is A "Limited Quantity Of Nothing"</h2>
He referred to cryptocurrencies as a bubble and described them as "a finite quantity of nothing." He believes that no cryptocurrency has intrinsic worth other than the restricted supply, as is the case with Bitcoin.

They will ultimately become worthless, he predicts, when liquidity dries up or the euphoria fades.

Steve Eisman, one of the traders who shorted the US housing market and one of the major protagonists in the film "The Big Short," chooses not to invest in Bitcoin.

Back in 2018, he expressed skepticism about cryptocurrency, claiming that it adds little value.

John Paulson Calls Cryptocurrency a Bubble, Advises Against it

John Paulson, who gambled against the U.S. home market during the last mortgage crisis, has joined those and calls cryptocurrency a bubble.

Kavya Barua is a voracious learner who is fascinated by crypto and Fintech advancements. Graduated from Janki Devi Memorial College's B.A (Hons) English program at the University of Delhi. She aspires to be a successful professional, having a keen interest in learning and achieving results.

John Paulson Calls Cryptocurrency a Bubble, Advises Against it

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