John Paulson, the hedge fund billionaire made a fortune in 2008 during the housing bubble. The investor earned $20bn by predicting the 2008 financial crisis. He made billions at a time when many Americans lost their homes and were made unemployed.
Paulson told Bloomberg Wealth with David Rubenstein that cryptocurrencies will be worth nothing in the future.
He said: “Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies.
“I would describe them as a limited supply of nothing.
“So to the extent there’s more demand than the limited supply, the price would go up. But to the extent the demand falls, then the price would go down.
“But because the amount of money trying to move out of cash and fixed income dwarfs the amount of investable gold, the supply and demand imbalance causes gold to rise.”
He added: “The money supply was up about 25 percent last year and the best indicator of inflation is money supply.
“So, I think we have inflation coming well in excess of what the current expectations are.”