#UGC #Cryptocurrencies #cybersecurity

Cryptocurrencies are a bubble

Lots of arguments are going on for bitcoin which is based on the block­chain technology. Bitcoin has formed at least three classic bubbles already in its brief history. Each time it crashed by 80% or more, and then revived after a few years. Cryptocurrencies, despite being considered among the market's hot commodities, have drawn sharp criticism from billionaire hedge fund manager John Paulson who described it as a 'bubble' that would prove to be 'worthless'. Paulson, while speaking at an episode of 'Bloomberg Wealth with David Rubenstein', said there is no intrinsic value attached with cryptocurrencies except for a 'limited amount'. The segment is 'too volatile', he said, pointing out that Bitcoin went from $5,000 to $45,000 within a short period.



Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless. Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies,' said Paulson, who earned a mark for betting against the US housing market more than a decade ago. We would say that cryptocurrencies are a bubble and described them as a limited supply of nothing,' he further said, adding that the prices would go up only to the extent where the demand is more than the limited supply.

Notably, cryptocurrencies, which are yet to be considered legal tender in any major economy, have garnered massive interest over the past couple of years.

Today's Headline in NewsHours
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