The billionaire who brought down the US mortgage market in 2008 predicted the collapse of cryptocurrencies and the collapse of their value "to zero".
Well-known billionaire and hedge fund manager John Paulson in an interview with Bloomberg called cryptocurrencies "a limited supply of emptiness" and said that they "will fall to zero".
"It doesn't matter where cryptocurrencies are traded today — in the end they will turn out to be useless. When the boom passes and their liquidity runs out, the value of cryptocurrencies will fall to zero, " the investor said, but did not say how long it will take.
Paulson gained fame by earning a fortune by playing for short during the 2008 financial crisis, when housing prices collapsed in the United States.
At the same time, he does not advise selling bitcoin, given its extreme volatility. Instead, Paulson suggested investing in gold bars because of the "very limited amount of such gold".
Last week, one of the officials of the People's Bank of China (PBOC) also said that bitcoin has no "real value" and is not a legal tender. The NBK once again confirmed that it is not going to soften its position on cryptocurrencies.
The Chinese government continues to tighten its policy towards the cryptocurrency industry as it actively tests and prepares for the official launch of the digital yuan, the state cryptocurrency of the People's Republic of China. At the request of the Central Bank of China, banks and financial organizations have stopped servicing any clients working with cryptocurrencies.