{"id":36817,"date":"2021-02-22T11:44:35","date_gmt":"2021-02-22T09:44:35","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=36817"},"modified":"2025-08-29T08:15:57","modified_gmt":"2025-08-29T05:15:57","slug":"opinion-governments-could-crush-bitcoin","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/opinion-governments-could-crush-bitcoin\/","title":{"rendered":"Opinion: Governments could &#8216;crush&#8217; Bitcoin"},"content":{"rendered":"<p><span style=\\\"font-weight: 400;\\\">Governments will stoke inflation and begin cracking down on gold and Bitcoin as competitors. This view was presented by investor Michael Burry, who <a href=\\\"https:\/\/ru.wikipedia.org\/wiki\/%D0%91%D1%8C%D1%8E%D1%80%D1%80%D0%B8,_%D0%9C%D0%B0%D0%B9%D0%BA%D0%BB\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\"><span style=\\\"font-weight: 400;\\\">predicted<\/span><\/a><span style=\\\"font-weight: 400;\\\"> the collapse of the U.S. housing market.<\/span><\/p>\n<p>\\n<\/p>\n<p><!--more--><\/p>\n<p>\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\"><p>\\n<\/p>\n<p dir=\\\"ltr\\\" lang=\\\"und\\\"><a href=\\\"https:\/\/t.co\/GcvalO8WdY\\\">pic.twitter.com\/GcvalO8WdY<\/a><\/p>\n<p>\\n<\/p>\n<p>\u2014 Michael Burry Archive (@BurryArchive) <a href=\\\"https:\/\/twitter.com\/BurryArchive\/status\/1362631409647591428?ref_src=twsrc%5Etfw\\\">February 19, 2021<\/a><\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p><script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">In the thread, the financier who became the prototype of the main character in the film <\/span><a href=\\\"https:\/\/www.kinopoisk.ru\/film\/501333\/\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\"><span style=\\\"font-weight: 400;\\\">&#8216;The Big Short&#8217;<\/span><\/a><span style=\\\"font-weight: 400;\\\">, predicted an expansion of government stimulus to overcome the COVID-19 crisis.<\/span><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">By Burry&#8217;s estimates, previously it took borrowing $3 to generate $1 of GDP. Now that ratio has worsened. He drew a parallel with<\/span> <a href=\\\"https:\/\/ru.wikipedia.org\/wiki\/%D0%92%D0%B5%D0%B9%D0%BC%D0%B0%D1%80%D1%81%D0%BA%D0%B0%D1%8F_%D1%80%D0%B5%D1%81%D0%BF%D1%83%D0%B1%D0%BB%D0%B8%D0%BA%D0%B0\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\"><span style=\\\"font-weight: 400;\\\">Germany in the 1920s<\/span><\/a><span style=\\\"font-weight: 400;\\\">, which serves as an example of the consequences of an active issuance of unsecured money. Burry noted the similarity of the current situation to that which preceded the inflation spike in the <\/span><a href=\\\"https:\/\/ru.wikipedia.org\/wiki\/%D0%93%D0%B0%D0%BB%D0%BE%D0%BF%D0%B8%D1%80%D1%83%D1%8E%D1%89%D0%B0%D1%8F_%D1%8B%D0%BD%D1%84%D0%BB%D1%8F%D1%86%D0%B8%D1%8F\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\"><span style=\\\"font-weight: 400;\\\">United States in the 1970s<\/span><\/a><span style=\\\"font-weight: 400;\\\">.\u00a0<\/span><\/p>\n<p>\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\"><p>\\n<\/p>\n<p dir=\\\"ltr\\\" lang=\\\"und\\\"><a href=\\\"https:\/\/t.co\/3ipNp7oLfM\\\">pic.twitter.com\/3ipNp7oLfM<\/a><\/p>\n<p>\\n<\/p>\n<p>\u2014 Michael Burry Archive (@BurryArchive) <a href=\\\"https:\/\/twitter.com\/BurryArchive\/status\/1362635795052421123?ref_src=twsrc%5Etfw\\\">February 19, 2021<\/a><\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p><script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">In separate posts, Burry backed his view with charts. They show how the U.S. government, guided by modern monetary theory, is expanding the money supply. This decision comes as retail sales and business activity indices recover. The financier says trillions of dollars of new stimulus will boost consumer demand and drive up production costs.<\/span><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">Burry also touched on bubbles in financial markets. In his view, they manifest not only in traditional metrics such as <\/span><a href=\\\"https:\/\/www.investopedia.com\/terms\/p\/putcallratio.asp\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\"><span style=\\\"font-weight: 400;\\\">Put\/Call Ratio<\/span><\/a><span style=\\\"font-weight: 400;\\\"> or the level of margin debt, but also in a new phenomenon \u2014 <a href=\"https:\/\/u1f987.com\/en\/news\/robinhood-at-the-centre-of-the-gamestop-dogecoin-and-reddit-trader-scandal\"> Reddit trader activity <\/a>.<\/span><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">The investor does not believe in Bitcoin, arguing that its scale is insufficient to meet the needs of a global economy. He cited the Swiss franc, which is not a reserve currency, despite its high reliability.<\/span><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">At the same time, Burry explained that he has no ill will toward Bitcoin.<\/span><\/p>\n<p>\\n<\/p>\n<blockquote>\n<p><i><span style=\\\"font-weight: 400;\\\">\\&#8221;I think the long-term future for a decentralized currency is precarious. Hard, unscrupulous centralized governments will not relinquish their monopolies on currencies. In the short term anything is possible. So I am not shorting Bitcoin,\\&#8221;<\/span><\/i> <i><span style=\\\"font-weight: 400;\\\">\u2014<\/span><\/i><span style=\\\"font-weight: 400;\\\"> the investor said.<\/span><\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\"><p>\\n<\/p>\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">I don\u2019t hate <a href=\\\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$BTC<\/a>. However, in my view, the long term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with <a href=\\\"https:\/\/twitter.com\/hashtag\/lifeblood?src=hash&#038;ref_src=twsrc%5Etfw\\\">#lifeblood<\/a> interests in monopolies on currencies. In the short run anything is possible- why I am not short <a href=\\\"https:\/\/twitter.com\/hashtag\/BTC?src=hash&#038;ref_src=twsrc%5Etfw\\\">#BTC<\/a>.<\/p>\n<p>\\n<\/p>\n<p>\u2014 Cassandra (@michaeljburry) <a href=\\\"https:\/\/twitter.com\/michaeljburry\/status\/1363183029431140356?ref_src=twsrc%5Etfw\\\">February 20, 2021<\/a><\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p><script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">As noted, SEC Commissioner Hester Peirce questioned whether there is <a href=\"https:\/\/u1f987.com\/en\/news\/sec-commissioner-hester-peirce-market-ready-for-bitcoin-etp-launch\">a way to completely outlaw Bitcoin<\/a>. Barry Silbert, founder of Digital Currency Group, shares a similar view.<\/span><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">Earlier, U.S. Treasury Secretary Janet Yellen pledged to closely <a href=\"https:\/\/u1f987.com\/en\/news\/us-treasury-secretary-nominee-concerned-about-links-between-cryptocurrencies-and-terrorism\">monitor the cryptocurrency market<\/a>. She intends to curb the use of digital currencies for illicit purposes.<\/span><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">President of the Federal Reserve Bank of St. Louis, James Bullard<\/span> <a href=\"https:\/\/u1f987.com\/en\/news\/in-the-feds-view-bitcoin-is-a-competitor-to-gold-not-the-dollar\"><span style=\\\"font-weight: 400;\\\">rejected the prospect of Bitcoin competing with the dollar<\/span><\/a><span style=\\\"font-weight: 400;\\\">.<\/span><\/p>\n<p>\\n<\/p>\n<p>Subscribe to ForkLog news on <a href=\\\"https:\/\/www.facebook.com\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Facebook<\/a>!<\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Governments will stoke inflation and start clamping down on gold and Bitcoin as competitors. This view was presented by investor Michael Burry, who predicted the collapse of the U.S. housing market.<\/p>\n","protected":false},"author":1,"featured_media":36818,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[809,1224,1138,36],"class_list":["post-36817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-central-banks","tag-macroeconomics","tag-opinions","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/36817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=36817"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/36817\/revisions"}],"predecessor-version":[{"id":36819,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/36817\/revisions\/36819"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/36818"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=36817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=36817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=36817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}