‘Big Short’ investor Michael Burry says he doesn’t hate bitcoin but thinks its ‘long-term future is tenuous’ | Currency News | Financial and Business News


    Michael Burry Getty
    • Michael Burry sees central governments as bitcoin’s biggest adversaries.
    • The investor said in a tweet that “legally violent, heartless central governments with #lifeblood interest in monopolies on currencies” won’t allow bitcoin to remain decentralized.
    • Burry said he does not hate bitcoin, but he sees the digital asset’s “long-term future” as “tenuous.”
    • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

    Government regulation is what bitcoin bulls should fear more than anything, according to legendary investor Michael Burry.

    In a Sunday tweet, the Scion Asset Management chief said while he doesn’t hate bitcoin and isn’t short the digital currency, he sees its “long-term future” as “tenuous.”

    In his tweet, Burry said “legally violent, heartless centralized governments with #lifeblood interests in monopolies on currencies” won’t allow bitcoin to thrive and remain decentralized in the long-term.

    Still, the Big Short investor noted “in the short-run anything is possible” for the digital currency. Bitcoin surpassed the $1 trillion market capitalization milestone last week before retracing gains on Monday. The cryptocurrency returned over 300% to investors in 2020 alone.

    Burry is best known for his billion-dollar bet on a US housing market crash before the 2007-08 financial crisis which was immortalized in “The Big Short” by Michael Lewis, and a subsequent movie by the same name.

    The Sunday tweet from Burry comes as he continues to sound alarms over a potential stock market collapse.

    Burry claimed the “market is dancing on a knife’s edge” in a recent series of Tweets that argued rampant speculation has caused a huge bubble in the equity market.

    Even worse for bitcoin investors, Burry doesn’t see gold or the digital asset as a way to prevent losses in the event of an “inflationary crisis” following a market crash. 

    “In an inflationary crisis, governments will move to squash competitors in the currency arena. $BTC #gold,” the investor said.

    Burry recently tweeted a string of quotes discussing Germany’s path to hyperinflation in the 1920s.

    He sees America’s current trajectory as replay of the post-World War I mishaps that eventually led to a 320% monthly inflation rate in the country.

    If Burry is right again, investors won’t be able to argue that they weren’t warned.

    “People say I didn’t warn last time,” Burry said in a tweet. “I did, but no one listened. So I warn this time. And still, no one listens. But I will have proof I warned.”





    Source link