Bitcoin Sentenced to Death Again! "The Big Short" Protagonist Michael Burry: Epic Inflation is Coming, Government to Crush Bitcoin and Gold

Michael Burry, the real-life protagonist of the famous movie "The Big Short," has recently issued warnings about an impending historic inflation and claimed that hedging assets would be of no use because governments will crush gold and Bitcoin.

Epic Inflation Ahead

Michael Burry tweeted on the 19th and promptly deleted it, stating:

Prepare for inflation. The economy is restarting, stimulus on the way. Before Covid, $3 trillion in debt created $1 trillion in GDP. This time around, it's worse. In an inflationary crisis, governments will further crush competitors in the fiat arena. #Bitcoin #Gold

Michael Burry, who was an early investor who predicted the subprime mortgage crisis and accurately avoided the 2008 financial crisis, reiterated his inflation thesis today:

Last time, people said I didn't warn. I did, but no one listened. This time, I'll prove I warned.

He also changed his Twitter bio to reflect the above statement.

https://twitter.com/michaeljburry/status/1363627735583629312

Not Hating, Not Shorting Bitcoin

On the 21st, Michael Burry mentioned Bitcoin again, stating in a tweet that he doesn't hate Bitcoin and believes that in the future, cryptocurrencies will exist under a legal violent, ruthless monetary system monopolized by authoritarian governments. Therefore, there may be room for development, as anything can happen, which is also why he is not shorting Bitcoin.

Triffin Dilemma

However, Michael Burry also pointed out why Bitcoin cannot replace the US dollar, as it cannot solve the age-old Triffin dilemma. He stated:

Bitcoin cannot solve the Triffin dilemma. As an international settlement currency, its scale needs to be sufficient to support the liquidity of the world's largest economy, which is why the Swiss franc cannot become a reserve currency. The fiat system will follow the next GDP leader.

https://twitter.com/michaeljburry/status/1363623932734042117

Michael Burry also predicts that China will rise. He believes that although China's current policies are not conducive to the Renminbi becoming a reserve currency, as China is expected to lead the GDP rankings in the upcoming years, China's consistent and efficient model will benefit the Renminbi as a result.