Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, has warned that governments could “squash” bitcoin in an inflationary crisis. Expecting more massive stimulus from the government, he said to “prepare for inflation.”
American investor Michael Burry has warned that governments could “squash” bitcoin and even gold to protect their own currencies. Burry founded hedge fund Scion Capital and is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that occurred between 2007 and 2010.
In a series of tweets Thursday night, Burry wrote, “Prepare for inflation.” He expects more stimulus from the government to drive up prices, fuelling inflation, as the economy tries to recover from the coronavirus pandemic. He tweeted:
In an inflationary crisis, governments will move to squash competitors in the currency arena. $BTC #gold
Burry became famous after his billion-dollar bet against the U.S. housing bubble was chronicled in the book and movie “The Big Short.” The film was directed by Adam McKay and starred Christian Bale as Burry, Steve Carell, Ryan Gosling, and Brad Pitt.
In addition, his hedge fund was holding 1.7 million Gamestop shares but sold all of its holdings in the fourth quarter of last year, before the massive surge fuelled by Wallstreetbets. According to Forbes, “The stock sales mean Burry missed out on a Reddit-fueled 2,000% surge in the video game retailer at one point in 2021, which would have made him over $1 billion.”
Burry further clarified his stance on bitcoin in a tweet Saturday:
I don’t hate BTC. However, in my view, the long term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with lifeblood interests in monopolies on currencies. In the short run anything is possible – why I am not short BTC.
Do you agree with Michael Burry about bitcoin? Let us know in the comments section below.
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