Hedge fund manager Michael Burry, known for forecasting the 2008 financial crisis, warned that governments could “crush” Bitcoin in an inflationary crisis. He expected more massive stimulus from the government and said he should prepare for inflation.
Michael Burry shares his opinion on Bitcoin
American investor Michael Burry has warned that governments could “crush” Bitcoin and even gold to protect their own currencies. Burry founded the hedge fund Scion Capital and is known for being the first investor to anticipate and benefit from the US subprime mortgage crisis between 2007 and 2010.
In a series of tweets Thursday night, Burry wrote, “Prepare for inflation.” He expects further stimulus from the government to boost prices and inflation as the economy tries to recover from the coronavirus pandemic. He tweeted:
In an inflationary crisis, governments will try to suppress competitors in the currency arena. $ BTC #gold
Burry became famous after his multi-billion dollar bet against the US housing bubble was recorded in the book and movie “The Big Short”. The film was directed by Adam McKay and played Christian Bale as Burry, Steve Carell, Ryan Gosling and Brad Pitt.
In addition, his hedge fund held 1.7 million Gamestop shares, but sold all of its holdings in the fourth quarter of last year before the massive spike was triggered by Wallstreetbets. According to Forbes, “because of the stock sales at some point in 2021, Burry missed a Reddit-driven video game retailer surge of 2,000% that would have grossed him over $ 1 billion.”
Burry further clarified his stance on Bitcoin in a tweet on Saturday:
I don’t hate BTC. In my view, however, the long-term future for decentralized crypto is difficult in a world of legally violent, heartless centralized governments with the lifeblood of monetary monopolies. In the short term everything is possible – why I am not BTC for short.
Do you agree with Michael Burry on Bitcoin? Let us know in the comments below.
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