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‘Big Short’ investor says Bitcoin valuation is ‘ridiculous’ Michael Burry, Who predicted the 2008 housing market crash years in advance.
“I think $100,000 in Bitcoin is the most ridiculous thing,” Burry told the author Michael Lewis On last week’s episode of the podcast “Breaking the Rules: The Big Short Companion,” he added that “it’s worth nothing.”
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“This is the tulip bulb of our time,” he continued, comparing the property to the tulip craze in 17th-century Holland. “It’s worse than tulip bulbs because it causes so much crime.”
This is not the first time Burry has targeted the largest cryptocurrency by market capitalization. Ahead of the asset’s 2021 rally, he said it was a “speculative bubble” and warned the risks outweighed any potential opportunities. It did begin a multi-year slump the following year, but has since risen nearly 100%.
Burry’s recent comments about Bitcoin come as he has made headlines in recent weeks for his short positions in Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR).
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Burry told Lewis on the “Against the Rules: The Big Short Companion” podcast last week that he explained the reasoning behind his short position on Palantir, saying the company’s revenue was being eaten up by stock compensation for executives and employees.
More broadly, Burry said the AI market is in a bubble, similar to the dot-com bubble of the early 2000s, adding that the bubble could burst within the next two years. He said historical data from similar bubbles shows that markets tend to peak before capital spending peaks.
Those recording significant gains should sell, Burry said, adding that if he had to hold any stock, it would be health care stocks. “They’ve definitely fallen out of favor,” he said.
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This article is ‘worthless’: Michael Burry says Bitcoin is the ‘tulip bulb of our time’ originally appeared on Benzinga.com
