Billionaire Spreads FUD to Pump His Gold Bags

Takeaways

Billionaire investor John Paulson says crypto is “worthless”
Paulson is a massive gold bug, saying it will “go parabolic”
Paulson admits he is too scared to short Bitcoin
Paulson was the man who bet against the housing market as seen in the ‘big short’.

We’ve seen it all before. Gold bugs have traditionally come after Bitcoin because they are. well, massive bag holders of Gold. The fud is obvious, like Verizon saying they have better service than T-Mobile. However, with gold, the disparity in performance is much more drastic than having a “little more cell coverage”. In fact, Bitcoin has destroyed Gold in the past decade, and the ever-growing realization that Bitcoin is actually “digital gold” rather than a “digital dollar” is clearly a frightening notion for billionaires like Paulson. The below chart shows Paulson really shouldn’t be “holdin’ on to what’s golden.” Instead of applauding Bitcoin, though, he has decided to go on the attack.

Now you may say to yourself, ok, so what? More FUD, we are used to it. Well, it is helpful to shine a light on the glaring conflict of interest that is involved with comments from folks like Paulson. When people read “billionaire investor says crypto and Bitcoin” is worthless, it can scare even the most hardened investor. Even though we’ve heard it all before, it can frighten people. Until you see that on the same day he is fudding Bitcoin, he is telling Bloomberg that Gold is ready to “go parabolic.” One look at the top crypto news results below tells you all you need to know.

Literally, the top 5 results on Google for crypto news are clearly organized headlines aiming to cause fear, uncertainty, and doubt–nothing new under the sun. So why now? Paulson didn’t just wake up today and realize that he thinks crypto is worthless–he has espoused this before. We have been hearing this for a decade from people like him. Just take a look at his logic for these comments. He says, “once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies.”

The problem is, Bitcoin, for example, is one of the most liquid assets in the world. According to market research, “compared to many other asset classes, Bitcoin can be considered very liquid most of the time.” Gold is far less liquid than Bitcoin. In fact, Gold cannot be considered as a liquid asset. Most of the banks that sell gold coins don’t buy it back. Once sold, it is sold. No buying back. Think about how illiquid jewelry is? Converting gold jewelry to cash is difficult, you will always be selling jewelry at a discount, usually.

Moreover, compared to traditionally liquid assets like Bonds, Bitcoin is far more liquid these days. We just reported recently that the bond market is actually suffering big-time from a lack of liquidity. So liquidity for Bitcoin is a non-issue, in fact, it is much more liquid than gold, as it is easily portable. Unlike Gold, it only takes one click of a button to convert BTC to cash.

His other argument about waning exuberance is also nonsense. People have been saying that people will lose interest in crypto for years. It is very obvious to look around you and see that people cherish their crypto more than any other asset, generally. It has become a philosophical lynchpin for people, as Bitcoin and crypto, through decentralization and sovereignty, is an inverse reflection of the most corrupt aspects of our society, e.g. the debt-based fiat economy. Just take a look at the Satoshi whitepaper plastered on a Japanese billboard. This is more than just vapid exuberance. It is more than an investment, it is an investment back by principles and ideals, something Paulson is overlooking.

Paulson even admitted that it “wasn’t even worth shorting bitcoin.” He wants to have his cake and eat it too–by attacking Bitcoin but not actually betting against it, to save face in the event it hits 100k by December. Paulson clearly has an agenda, if you couldn’t tell by now. He owns millions upon millions of dollars worth of Gold and gold-related entities. There have numerous articles in the last few years describing Paulson proclaiming he’s “going big on Gold.

Right now he sees an opportune moment. Here is his tell: “Paulson sees investors pulling money out of fixed income and cash as inflation rises, then heading toward the only logical destination — that is, gold.” So Paulson is likely seething at Bitcoin sucking up billions of dollars that in this environment, as he describes it, would normally be cycled into the gold market. Yet, his Gold investments haven’t panned out. As of 2012, 25% of his portfolio (Paulson’s Advantage fund) was in Gold, and investors weren’t happy.

“I would be happier if he cut the gold position in half,” says one investor who put in a notice to take his money out of the fund in June. “He would have been up 4 percent in the first quarter if it weren’t for the goddamned gold.”

Those investors, if they haven’t taken their funds out of Paulson’s fund, aren’t any happier now. Gold hasn’t performed really any better since 2012..unlike…Bitcoin.

So remember, no matter how many articles they coordinate to splash all over Google to hurt crypto, know that they have an agenda, and usually it’s to either accumulate more Bitcoin, or to try and pump their rivaling asset, like Gold. And one other thing sticks out, no one in our camp uses such vicious rhetoric and says Gold is “going to zero.” So let them fling mud, while we ride crypto far above ground. As right as Paulson was in 2008, putting everything on his big short that cashed in, he clearly isn’t as brave with Bitcoin, and that says a lot.

The post Billionaire Spreads FUD to Pump His Gold Bags appeared first on CryptosRus.

Text source: CryptosRus

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