Billionaire investor John Paulson has given harsh words about cryptocurrencies this week, saying that digital currencies are “a limited supply of nothing.”
Paulson, who is the co-founder of Carlyle Group and became famous in 2007 by shorting the United States housing market, made the remark to “Bloomberg Wealth,” adding that cryptos are a bubble that will “eventually turn worthless.”
“I would say they are a limited supply of nothing,” he said. “There no intrinsic value to any of them except being in a limited amount.”
“Once liquidity dries up, they will go down to zero,” he said. “I would not recommend anyone invest in cryptos.”
Bitcoin was off almost 1% to $47,818 this Monday but it sill keeping a ytd gain of 65.5%, while Ethereum was lower slightly at around $3,179 and Dogecoin was off by 27 cents.
James Edwards, crypto specialist at Finder, stated that “Bitcoin is in the back seat right now as the competition between layer-1 coins like Solana, Cardano and Avalanche increases.”
“Bitcoin is likely to go near psychological resistance at about $50,000 until a catalyst event creates a new wave of buying,” he said.
Markets are still centered on the public narrative, Edwards said, “so if there is no news like another top tech company adding Bitcoin to their holdings, then I would not be surprised to see it come back as low as $43,000, depending on past market cycles.”
In other crypto news, Citigroup reported last week that the company was considering allowing bitcoin futures trading for some institutional customers, citing greater demand in the crypto space.
Analysts have noted that governments around the globe are increasing their efforts to regulate and control cryptocurrencies.
Winston Ma, a former director at China Investment Corp., reported that Canada was enforcing a tightened regime for crypto exchanges in past months.
He said that the Ontario Securities Commission has stopped two trading platforms that give crypto services from using the popular stablecoin Tether, according to official regulatory reports.
“It seems that Canada is joining the United States and China, the two largest cryptocurrency markets and also the two top regulatory enforcers, in taking these actions against stablecoins such as Tether,” said Ma.
Author: Scott Dowdy