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Hedge fund manager Michael Burry, famous for predicting the 2008 financial crisis, warned of “the mother of all crashes.” He further explained that the problem with cryptocurrency is leverage.
Michael Burry warns of Mother of All crash
Renowned investor and founder of private investment firm Scion Asset Management, Michael Burry, shared his take on the direction of the markets last week.
Burry is best known for being the first investor to predict and profit from the subprime mortgage crisis in the United States that occurred between 2007 and 2010. He is featured in “The Big Short,” a book by Michael Lewis on the mortgage crisis, which was made into a movie starring Christian Bale.
The founder of Scion Asset Management tweeted on Thursday:
All the hype / speculation done is attracting retail before the mother of all crashes. #FOMO dishes do not resolve sideways; When crypto falls by trillions or memes stocks fall by tens of billions, Main Street losses will approach country size. The story has not changed.
He also commented on cryptocurrency, saying “the problem with crypto, like with most things, is leverage.” The famous investor also said, “If you don’t know what crypto leverage is, you don’t know anything about crypto no matter what else you think you know.”
Burry has previously said he does not hate bitcoin, but is concerned that the government is attacking cryptocurrency heavily. He warned in February that “in an inflationary crisis, governments will crush their competitors on the monetary scene.”
While emphasizing, “I don’t hate BTC,” Burry said that in his opinion, “the long-term future is precarious for decentralized crypto in a world of legally violent and heartless centralized governments with vital interests in it. currency monopolies “. Nonetheless, he said he was not short of BTC because “in the short term anything is possible”.
Burry isn’t the only one predicting a crash. Last week, Rich Dad Poor Dad author Robert Kiyosaki warned that the “biggest bubble in world history is getting bigger”, warning that the “biggest crash in world history” is to come up. The famous author expects the price of bitcoin to drop to the $ 24,000 level where he will buy even more BTC.
What do you think of Michael Burry’s prediction and his take on 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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