- Michael Burry says governments can handicap bitcoin to protect their currencies.
- “The Big Short” investors doubt that cryptocurrencies could disrupt the financial system.
- Burry has hit bitcoin like a “speculative bubble” with an uncertain future.
- Visit the Business Insider website for more stories.
Bitcoin can be interrupted by governments that consider it a threat to their currencies, Michael Burry said in a now deleted tweet on Tuesday.
“As for the #BTC, will central banks ever use it as a store of value, or will they be forced to handicap it and move it to niche status like so many promissory notes?” asked the investor as bitcoin continues to trade near record highs after more than tripling in price over the past six months.
“In the long run, this is important in a world of centralized, powerful, violent and ruthless governments.”
Burry is best known for his billion-dollar investment in the mid-2000s US housing bubble, which was immortalized in Michael Lewis’ book “The Big Short” and its film adaptation, in which Burry was played by Christian Bale.
In another deleted tweet on Tuesday, Burry said that bitcoin can fight to disrupt an entrenched global financial system that has relied on fiat currencies for centuries.
“As for #BTC and other cryptocurrencies, maybe bulls underestimate the already established networking power embodied in the global fiat economic system that chooses a captain and is then seen to support that captain until the captain changes?” he asked.
Burry has been a song critic of bitcoin, warns the digital coin is a “speculative bubble” driven by debt in a tweet last week.
In February, he also said that the long-term outlook was “weak”, but added that he was not short on bitcoin because “anything is possible” in the near future.
In addition, the investor tweeted last month that most bitcoin is mined in countries facing sanctions such as China, Iran and Russia.
As a result, “crypto in a race” is to gain enough institutional support to resist the efforts of regulators and central banks to destroy it, he said.