Big Short Michael Burry warns: Governments may "suppress" Bitcoin to protect their currencies

Source: China Finance Network

Michael Burry, a hedge fund manager famous for predicting the 2008 financial crisis, warned that governments may "suppress" Bitcoin and even gold in an inflation crisis to protect their currencies. He said that he expected the government to take more large-scale stimulus measures and "prepare for inflation."

US investor Michael Burry has warned that governments may "suppress" Bitcoin and even gold to protect their currencies in an inflation crisis. In a series of tweets late Thursday, Burry wrote: "Get ready for inflation." He expects governments to take more stimulus measures, pushing up prices and fueling inflation as the economy tries to recover from the coronavirus pandemic.

Burry founded hedge fund Scion Capital and is best known for being the first investor to foresee and profit from the 2007-2010 U.S. subprime mortgage crisis.

Burry rose to fame when he chronicled his $1 billion bet on the U.S. housing bubble in the book and film "The Big Short," directed by Adam McKay and starring Christian Bale as Burry, Steve Carell, Ryan Gosling and Brad Pitt.

Additionally, his hedge fund once held 1.7 million shares of GameStop, but he sold all of them in the fourth quarter of last year, before the Wall Street Journal-fueled surge. The stock sales meant Burry missed out on a Reddit-fueled 2,000% surge in the video game retailer in 2021 that would have made him more than $1 billion, according to Forbes.

Burry further clarified his stance on Bitcoin in a tweet on Saturday. I don't hate BTC. However, in my opinion, the long-term prospects for decentralized crypto are tenuous in a world of legally violent, ruthless centralized governments with a monopoly on money as their lifeblood. But, in the short term, anything is possible, which is why I'm not shorting BTC.