In a sign that some investors (including John Paulson) might see as indicative of a top in the crypto world, Hollywood is now getting in on the act.
Actress and producer Reese Witherspoon tweeted this week that she’s now in the space, writing “Just bought my first ETH! Let’s do this #cryptotwitter.”
Just bought my first ETH! Let’s do this #cryptotwitter
— Reese Witherspoon (@ReeseW) September 2, 2021
Ethereum has emerged this year as a competitor to the better known “bitcoin.” It uses ethereum blockchain technology, created by the 27 year old Russian Canadian computer programming prodigy Vitalik Buterin back in 2013. Buterin first discovered bitcoin in 2011 at the age of 17 — and went on to found “Bitcoin Magazine” that same year.
But the price of Ether, which at $3,952 is nearing an all-time high, has some market watchers wondering whether cryptos are an internet style bubble onto themselves.
Billionaire investor John Paulson, who became famous for shorting subprime ahead of the crisis said this week that he does not think that cryptocurrencies are a viable store of value.
“…I would say that cryptocurrencies are a bubble. I would describe them as a limited supply of nothing,” Paulson told Bloomberg.
“Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless. Once the exuberance wears off, or liquidity dries up, they will go to zero,” he continued.
Nontheless, Paulson will not be shorting crypto any time soon. The risk, he explains, is much greater than shorting bonds.
“In crypto, there’s unlimited downside. So even though I could be right over the long term, in the short term, I’d be wiped out,” Paulson explains.
Witherspoon herself has had an illustrious career not just in acting but in business, as well. She recently sold her production company “Hello Sunshine” to a newly backed media firm backed by the private Equity firm Blackstone Group for an undisclosed sum believed to be in the hundreds of millions.
Meanwhile, investors are certainly welcoming Witherspoon to the club. The crypto currency jumped 5% on the news that she had invested in it.