Famous ‘Big Short’ Investor Warns of Bitcoin’s ‘Mother of All Crashes’!
The well-known ‘Big Short’ investor Michael Burry warns of a gigantic crash due to Bitcoin, among others.
This well-known hedge fund manager is called Michael Burry, famous for his prediction of the 2008 financial crisis. This has caused him to go short and become enormously rich. Burry is best known for being the first investor to foresee and take advantage of the US subprime mortgage crisis between 2007 and 2010. He is portrayed in ‘The Big Short’, a book by Michael Lewis about the mortgage crisis, which was turned into a film starring Christian Bale. Not a stupid man and now he foresees, among other things, a Bitcoin crash.
Mother of all crashes
No, he doesn’t have a happy message. He predicts (again) a massive crash, only this time caused by cryptocurrencies like Bitcoin. It’s not the digital coins themselves that are the biggest problem, it’s the leverage! He made his prediction last week on where he thinks the markets are headed, tweeting:
“All the hype/speculation that’s being done is bringing in the business for the mother of all crashes. #FOMO Parabolas do not resolve sideways; When crypto trillions fall, or meme stocks fall in the tens of billions, Main Street’s losses will approach the size of countries. History hasn’t changed.’
Bitcoin crash partly due to leverage
Burry believes that “the problem with crypto, as with most things, is leverage. If you don’t know how much leverage a crypto has, you don’t know anything about crypto. No matter how much you think you know.’ In other words, he says that many people are in cryptos, without (properly) understanding the real workings of it. With all the possible consequences that entails. He also sees another danger, which is that the government will intervene. This will also affect prices and confidence in the currencies.
Burry is not alone in foreseeing problems. Robert Kiyosaki warned before – this is the author of Rich Dad Poor Dad – that the “biggest bubble in world history is getting bigger” and is coming.
