Cryptocurrencies and bitcoin (EXANTE: Bitcoin) represent nothing more but a limited supply of nothing, John Paulson said in an interview with Bloomberg. The American billionaire, who made a fortune by shorting the US real estate market in the 2008 financial crisis, said he sees "no intrinsic value" to any of the cryptocurrencies "except that there is a limited amount."
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"I would describe them as a limited supply of nothing. So to the extent, there is more demand than the limited supply, the price would go up. But to the extent the demand falls, then the price would go down," he said.
Paulson's critique comes as billionaire Simon Nixon's Seek Capital Family aims to increase exposure to cryptocurrencies as wealthy families are speeding up with investments in cryptocurrencies. Adam Proctor, Managing Director at Seek Ventures, said the company wants to increase its allocation to cryptocurrencies as it feels "it is an important area for the future." The firm is also seeking an analyst to focus on a new market.
Earlier in March, Norwegian billionaire Kjell Inge Rokke, who made his fortune on oil and gas, also announced the launch of a new bitcoin-focused investment company called Seetee. The fund has already bought 1170 BTC and will be hodling the cryptocurrency.
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