Brianna Beckford

In the weekly roundup episode of Blockworks&#8217; podcast &#8220;<a href="https://www.youtube.com/watch?v=ENLJXzXvLNY" target="_blank" rel="noreferrer noopener">On the Margin</a>,&#8221; Michael Ippolito, co-founder, sits down with his new co-host Mark Yusko of Morgan Creek to dive into expensive equity market valuations, slack in the labor market, John Paulson and Gary Gensler&#8217;s comments on crypto, and FTX.US plans for world domination.



They also cover:



<ul class="wp-block-list"><li>Wealth inequality</li><li>US vs. China regulations</li></ul>



Watch the full episode below! 👇



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&#8220;On the Margin&#8221; is a two-part show.&nbsp;Once a week, Mike interviews industry experts, and then at the end of the week he is joined by co-host Mark Yusko where they break down the top crypto and macro stories. Episodes go live every Wednesday and Saturday morning.



Subscribe to &#8220;On the Margin&#8221; today on <a href="https://podcasts.apple.com/us/podcast/lyn-alden-explains-connection-between-inflation-bitcoin/id1558223079?i=1000513411286" target="_blank" rel="noreferrer noopener">Apple</a> or <a href="https://spoti.fi/3bTa9uw" target="_blank" rel="noreferrer noopener">Spotify</a>, or watch episodes on <a href="https://youtube.com/playlist?list=PLvER9nHSRN3xVs_p-dl7L7K_ZgL6lSudu" target="_blank" rel="noreferrer noopener">YouTube</a>.



Are you a UK or EU reader that cant get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.

Equity

Podcast: Mark Yusko Talks FTX.US Acquisition, Gensler Crackdown, More

Ben Strack

<div id="highlights-block_612d26c9e2056" class="highlights">
 <ul>
 <li>Paulson said unlike his “asymmetrical” bet against the US subprime mortgage lending market in 2007, crypto has “unlimited downside”</li>
 <li>Paulson is in part known for using credit default swaps to bet against the US subprime mortgage lending market in 2007. </li>
 </ul>
 
</div>



While some billionaires are bullish on crypto, John Paulson is not one of them.



The founder of New York-based investment management firm Paulson &amp; Co. called cryptocurrencies a bubble during an interview <a href="https://www.bloomberg.com/news/articles/2021-08-30/is-bitcoin-a-good-investment-billionaire-paulson-says-crypto-worthless-bubble" target="_blank" rel="noreferrer noopener">on Bloomberg TV</a>, also describing them as “a limited supply of nothing.”



“Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless,” he explained in an episode of Bloomberg Wealth with <a href="https://www.bloomberg.com/billionaires/id/2398573" target="_blank" rel="noreferrer noopener">David Rubenstein</a>. “Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies.”



An executive at Paulson &amp; Co. did not immediately return Blockworks’ request for comment.&nbsp;



Paulson is in part known for using credit default swaps to bet against the US subprime mortgage lending market in 2007. Funds he ran were up $15 billion that year, and he collected an estimated $4 billion for himself, the Wall Street Journal <a href="https://www.wsj.com/articles/SB120036645057290423" target="_blank" rel="noreferrer noopener">previously reported</a>.



The hedge fund billionaire said during the interview that his firm shorted subprime because it was asymmetrical &#8211; the upside far outweighed the downside &#8211; but noted that crypto is too volatile to short.&nbsp;



“In crypto, there’s unlimited downside,” he said. “So even though I could be right over the long term, in the short term, I’d be wiped out.”



Paulson said he prefers investing gold in times of inflation, noting that he expects inflation levels to exceed expectations. Federal Reserve Chairman Jerome Powell said during his virtual <a href="https://cms.blockworks.co/powell-tapering-might-begin-this-year-rate-hike-far-off/" target="_blank" rel="noreferrer noopener">Jackson Hole policy forum address</a> on Friday that today’s 4% inflation will not be lasting, also claiming that current wage increases are unlikely to impact inflation significantly. 



Paulson’s comments come as other billionaire hedge fund managers have vocalized the opportunity they see in crypto investments.



Paul Tudor Jones, founder and CIO of <a href="https://www.tudor.com/" target="_blank" rel="noreferrer noopener">Tudor Investment Corporation</a>, said in June that bitcoin was a <a href="https://cms.blockworks.co/paul-tudor-jones-likes-bitcoin-as-portfolio-diversifier/" target="_blank" rel="noreferrer noopener">good portfolio diversifier</a> to combat inflation, noting that he favors allocating 5% of a portfolio to the cryptocurrency.



Steve Cohen, CEO of hedge fund manager Point72, said during <a href="https://stray-reflections.com/publicevent/30/Inner_Game_with_Steven_Cohen" target="_blank" rel="noreferrer noopener">a webinar </a>that he has been looking into crypto and is now “fully converted.” The billionaire noted at the time that he cares more about how disruptive blockchain technology can be than bitcoin itself.



<a href="https://cms.blockworks.co/survey-1-in-6-hedge-funds-plan-to-invest-in-crypto-in-5-years/" target="_blank" rel="noreferrer noopener">A survey</a> published by Intertrust Group found that about one in six hedge fund managers expect to invest more than 10% of their investment holdings in cryptocurrencies in five years.



Want more investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a> September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. <a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.

John Paulson

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