The Big Short author talks about Bitcoin: There is definitely a connection to the mess in the U.S. federal government

American super-bestselling author Michael Lewis recently talked about Bitcoin in an interview with Yahoo Finance host Jen Rogers.

Lewis, who graduated from Princeton University and the London School of Economics, worked as a bond trader at Salomon Brothers before writing for The New York Times and serving as editor of the American edition of The Observer. His famous work, Liar's Poker, is recognized as a classic work describing the culture of Wall Street in the 1980s. He also wrote best-selling books such as Leaving the World Behind, The Big Short, and The Housing Game.

Financial Psychology

“What about the psychology of Bitcoin? Because, I think people are starting to realize, is this going to be true or is this going to be true…,” Ms. Rogers began.

Mr. Lewis quickly interrupted her, “Well, it exists.”

Ms Rogers continued:

"Well, now more people are coming out and talking about it, you know, the real thinkers aren't telling us it's a scam, even though we've heard from Jamie Dimon, Buffett, and all these other people. But we've also got a lot of coverage from the Wall Street Journal. CME Group is also planning to launch a bitcoin futures contract. So, what do you think about bitcoin?"

Lewis replied:

“Bitcoin is money without a central authority, a currency that is not backed by a central bank or a government. So what drives its value? Distrust of central authorities and a sense that the government might not work.”

He stressed that “there is definitely a connection between the movement of Bitcoin and the chaos in the U.S. federal government.”

From $5 to $378

As the interview continued, Lewis began to talk about his story with Bitcoin.

“A few years ago I was going to write an article about Bitcoin and I just wanted to understand it. So I was invited to go to the Bitcoin community in Silicon Valley and I went and spent a day trying to understand if there was anything out there. What I wanted to know was, could I use this stuff there? And they said, ‘Sure, your future is here, in Palo Alto. We can buy a cup of coffee with Bitcoin.’ I said, ‘Really? I didn’t know you could do that,’ and they said yes and had me install a wallet app and sent me $5 worth of Bitcoin,” Mr Lewis said.

“I wish you had kept those $5 in Bitcoins,” Ms. Rogers said with a laugh. “They’re worth a lot more now!”

“No, wait a minute,” Mr. Lewis said, waving her off. “So, we go to the coffee shop, right? These people are Bitcoin experts. And of course, Bitcoin doesn’t work. Like, we’re scanning our phones and the guy behind the counter is like, ‘We don’t accept Bitcoin,’ and it’s like, ‘Oh, we don’t accept Bitcoin.’ It’s like, ‘Why don’t you tell me when I buy something with Bitcoin and maybe I’ll write it down.’ I did put that $5 in my phone.”

"How much are they worth now?" Ms. Rogers asked.

“$378,” Mr. Lewis said with a laugh. “So, they stayed in my wallet, and now those bitcoins are worth more than my phone!”