Billionaire investor John Paulson had harsh words for cryptocurrencies Monday, calling digital currencies “a limited supply of nothing.”
Paulson, co-founder of Carlyle Group who became famous in 2007 by shorting the US housing market, made the comments to “Bloomberg Wealth with David Rubenstein,” adding that cryptocurrencies are a bubble that will “eventually prove to be worthless.”
“I would describe them as a limited supply of nothing,” he said. “There’s no intrinsic value to any of the cryptocurrencies except that there’s a limited amount.”
“Once the exuberance wears off, or liquidity dries up, they will go to zero,” he added. “I wouldn’t recommend anyone invest in cryptocurrencies.”
Source: Toronto Daily Star
Date: September 2nd, 2021
- “Canada has been enforcing a tightened regime for cryptocurrency exchanges in recent months. He noted that the Ontario Securities Commission has barred a pair of trading platforms that offer crypto services from trading the popular stablecoin Tether, according to regulatory documents.”
First off, what is a “stablecoin”.
Answer: it is a cryptocoin that attempts to peg its value to an outside asset, which for Tether is the U.S. dollar.
- Second, why the regulation from Canada (and others)? Problematically, the stablecoin Tether only has about 1% of U.S. dollars on hand to peg to that dollar, leading many to believe that it is not a stablecoin at all.
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