Known for his counter-betting that earned him millions, especially during the subprime lending crisis, John Paulson has stayed away from the cryptocurrency world. 14 years after the financial crisis, the billionaire is again showing signs of high speculation in the market. However, the investor believes that cryptocurrencies will prove to be a “useless” bubble.
While most investors around the world saw the value of their portfolios plummet due to the mortgage crisis, Paulson resorted to short-selling strategies to capitalize on the collapse of the US mortgage market. The stake that brought in $ 20 billion in the biggest financial crisis since the Great Depression. Since then, the investor has had no other investment opportunity.
In an interview with Bloomberg, Paulson expressed concern about rising prices, adding that a rapid increase in the money supply could push inflation well above market expectations, and gold is a good asset to protect the portfolio at the moment.
In terms of cryptocurrencies, Paulson argues that these assets represent a bubble that “will end up useless.” “I would not recommend anyone to invest in cryptocurrencies,” the investor said.
Far from the spotlight in recent years, Paulson turned his hedge fund into a family office last year after assets plunged to about $ 9 billion in 2019 from the $ 38 billion he managed in 2011.
