“Big Short” investor Michael Burry warns of the “mother of all crashes” – says Crypto’s problem is leverage – markets and prices Bitcoin News

The hedge fund manager Michael Burry, famous for his predictions of the financial crisis of 2008, has warned of the “mother of all crashes”. He went on to explain that the problem with cryptocurrency is leverage.

Michael Burry warns of “mother of all crashes”

Well-known investor and founder of private investment firm Scion Asset Management, Michael Burry, shared his views last week on where the markets will go.

Burry is best known for being the first investor to foresee and benefit from the US subprime mortgage crisis that emerged between 2007 and 2010 in a film starring Christian Bale.

Scion Asset Management’s founder tweeted on Thursday:

All the hype / speculation does is attract retailers before the mother of all crashes is. # FOMO parabolas do not resolve sideways; If crypto falls trillions or meme stocks fall tens of billions, losses on Main Street will approach the size of countries. The story hasn’t changed.

He also commented on cryptocurrency, claiming that “the problem with crypto, as with most things, is leverage”. The famous investor went on to say, “If you don’t know how much leverage is in crypto, you don’t know anything about crypto, no matter how much else you think you know.”

Burry previously said he doesn’t hate Bitcoin but is concerned that the government is severely degrading the cryptocurrency. He warned in February: “In an inflationary crisis, governments will turn to crushing competitors in the currency area”.

While emphasizing, “I don’t hate BTC,” Burry said that in his view, “the long-term future for decentralized crypto in a world of violent, heartless centralized governments with vital interests in currency monopolies is tenuous.” Even so, he said he was not short on BTC because “anything is possible in the short term”.

Burry isn’t the only one expecting a crash. Last week, Rich Dad Poor Dad writer Robert Kiyosaki warned that “the greatest bubble in world history is getting bigger” and warned that the “greatest crash in world history” is imminent. The famous author expects the Bitcoin price to drop to the USD 24,000 level where he will buy even more BTC.

What do you think of Michael Burry’s prediction and view of cryptocurrency? Let us know in the comments section below.

Tags in this story

Crypto Problem, Leverage, Main Street, Michael Burry, Michael Burry Bitcoin, Michael Burry Crashes, Michael Burry Crypto, Michael Burry Cryptocurrency, Mother of All Crashes, Retail Investors, Wall Street

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