Billionaire investor John Paulson had harsh words for cryptocurrencies on Monday, calling digital currencies “a limited supply of nothing.”
Paulson, co-founder of Carlyle Group which rose to fame in 2007 bypassing the US real estate market, commented on “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 is no intrinsic value in any of the cryptocurrencies except that there is a limited amount.”
“Once the exuberance wears off or the liquidity dries up, it will be zero,” he added. “I would not recommend anyone to invest in cryptocurrencies.”
Bitcoin was down nearly 1% to $ 47,818 on Monday, according to CoinDesk, but it still maintains a 65.5% gain year-to-date, while Ethereum was down slightly to $ 3,179 and Dogecoin was down slightly at 27 cents each.
James Edwards, Cryptocurrency Specialist at Searcher, said that “Bitcoin is taking a step back at this time as competition between Layer 1 protocols like Cardano, Solana and Avalanche intensifies.”
“Bitcoin is expected to hover around psychological resistance of $ 50,000 until a catalytic event spurs the next wave of buying,” he said.
The markets are still focused on the public narrative right now, Edwards added, “so if there isn’t a major event like another big tech company adding Bitcoin to its balance sheet, then I wouldn’t be. surprised to see it retrace as low as $ 43,000, based on previous market cycles. “
In other cryptocurrency news, Citigroup (VS) – Get the report from Citigroup Inc. said last week that it was considering offering bitcoin futures trading to some institutional clients, citing increased demand in the cryptocurrency space.
Cryptocurrency analysts have noted that governments around the world are stepping up efforts to regulate cryptocurrencies.
Winston Ma, former managing director and head of North America at China Investment Corp., said Canada has had a stricter regime for cryptocurrency exchanges in recent months.
He noted that the Ontario Securities Commission has banned a pair of trading platforms offering crypto services from trading the popular stablecoin Tether, according to regulatory documents.
“It appears that Canada is joining the United States and China, the two largest crypto markets and also the two most powerful regulators, in taking regulatory action against stablecoins like Tether, “said Ma., Author of” The Digital War – How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspace. “
Whereas the major economies of the world do not agree on much these days. Ma said that “there is one issue the two superpowers agree on: the regulation of ‘stablecoins'”.
David Lesperance, Managing Partner of Immigration and Tax Advisor with Lesperance & Associates, said that “those with undisclosed cryptocurrency are at a crossroads.”
They can either retain the services of an expert to make a tax effective disclosure to bring yourself into compliance, or “order you to play hide and seek with a tax authority that has unlimited time and resources and is contacted. around the world by other tax authorities which may confuse you as well. “
For those who had previously chosen “Path B” because they thought they could hide behind “mixers”, said Lesperance, the case of Larry Dean Harmon should be noted.
Harmon, 38, of Akron, Ohio, ran a mixer called Helix, which federal investigators said allowed customers, for a fee, to send bitcoin to designated recipients in a way designed to conceal the source or the owner of the bitcoin.
“Harmon recently pleaded guilty to conspiring to launder monetary instruments,” Lesperance said. “Faced with 20 years in prison, it is reasonable to assume that his records are a major bargaining chip in his sentencing negotiations.”