Hedge scratch manager Michael Burry, famed for forecasting the 2008 financial crisis, has warned of “the mother of all crashes.” He further expounded that the problem with cryptocurrency is the leverage.
Michael Burry Warns of Mother of All Crashes
Famous investor and die of private investment firm Scion Asset Management, Michael Burry, shared his view last week connected with where he sees the markets heading.
Burry is best known for being the first investor to foresee and profit from the U.S. subprime mortgage danger that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage emergency, which was made into a movie starring Christian Bale.
The Scion Asset Management founder tweeted Thursday:
All hype/pondering is doing is drawing in retail before the mother of all crashes. #FOMO Parabolas don’t resolve sideways; When crypto surrenders from trillions, or meme stocks fall from tens of billions, Main Street losses will come near the size of countries. History ain’t changed.
He also commented on cryptocurrency, asserting that “The problem with crypto, as in myriad things, is the leverage.” The famed investor further opined, “If you don’t know how much leverage is in crypto, you don’t know anything more crypto, no matter how much else you think you know.”
Burry previously said that he does not hate bitcoin but is involved about the government coming down heavily on cryptocurrency. He warned in February that “In an inflationary crisis, governments hand down move to squash competitors in the currency arena.”
While emphasizing, “I don’t hate BTC,” Burry said that in his view, “the extended term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with lifeblood talk inti in monopolies on currencies.” Nonetheless, he said he is not short BTC because “In the short run anything is possible.”
Burry is not the only one foreseeing a run. Last week, Rich Dad Poor Dad author Robert Kiyosaki warned that the “Biggest bubble in world recapitulation getting bigger,” warning that the “Biggest crash in world history” is coming. The famed author expects the guerdon of bitcoin to fall to the $24K level where he will buy some more BTC.
What do you think about Michael Burry’s suggestion and his view on cryptocurrency? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes exclusive. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not minister to investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss rooted or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimer