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Even though John Paulson believes that cryptocurrencies have countless flaws, he stated that he "won't short Bitcoin" because Bitcoin has surged from $5,000 to $45,000, making its price too volatile and challenging to short. At the same time, John Paulson predicts that the cryptocurrency market will "go to zero." He continued:
No matter how high the current trading prices of cryptocurrencies are, they will eventually be proven to be worthless. Once the enthusiasm fades or liquidity dries up, they will go to zero. I do not recommend anyone to invest in cryptocurrencies.
Given his steadfast bearish stance on cryptocurrencies, why not go all-in and short them? At this point, John Paulson mentioned that due to the intense short-term volatility of cryptocurrencies, shorting them carries relatively high risks. He stated:
Cryptocurrencies have many drawbacks. While my long-term predictions for cryptocurrencies (bubble and going to zero) may be correct, in the short term (if I were to short), I might end up getting completely washed out. For example, Bitcoin has surged from $5,000 to $45,000. It's too volatile to short. |
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Post time 4-1-2024 09:53:48