Here are reasons why billionaire John Paulson‘s pointless call may be correct

<p>Since 2009, when Bitcoin initially emerged from the innards of an unknown engineer's computer system, it appears as though cryptocurrency has been dismissed as a meaningless craze.</p> <p>While some of the criticism has come from members of the general public who may not understand what cryptocurrencies are, how they work, or why they have any value at all, some extremely astute financial minds have also cast doubt on crypto's burgeoning importance.</p> <p>One such opponent is billionaire investor John Paulson, who recently described digital currencies as a bubble that will "ultimately prove worthless."</p> <p>The volatility in cryptocurrency markets during the last few days — Bitcoin fell by 17% at one point on Tuesday, the same day El Salvador began adopting it as legal tender — does little to defend Paulson's criticism.</p> <p>Let's see what his beef is with crypto and whether you should sell or buy the dip.</p> <p>Paulson's justifications for being pessimistic on cryptocurrency</p> <p>Paulson has a track record of revealing at least one high-profile financial swindle. As a co-founder of the Carlyle Group, he was one of the hedge fund titans who identified the subprime mortgage industry's corruption and consequently shorted the US housing market before it crashed in 2007, earning himself an estimated $4 billion.</p> <p>And he appears to be equally dubious of crypto.</p> <p>“I would not encourage investing in cryptocurrency to anyone,” Paulson stated during a Bloomberg Wealth with David Rubenstein Bloomberg TV broadcast.</p> <p>“I'd characterise them as having a finite supply of nothing. Thus, to the degree that demand exceeds supply, the price would increase. However, if demand declines, the price will fall. There is no fundamental value to any cryptocurrency other than the fact that there is a finite supply.”</p> <p>It's also worth considering how much true value an item may have when its price can move so dramatically from minute to minute, as Bitcoin's price did on Tuesday. According to CoinMar