The ‘Big Short’ figure weighs the prospect of shorting cryptocurrencies

The investor Michael Burry, who predicted the 2007 mortgage crisis, is examining the possibility of taking a short position in cryptocurrencies. The founder of the Scion Capital hedge fund asked his followers on Twitter how this could be done.

Burry tends to delete his published tweets, but the Michael Burry Archive account preserved the post.

pic.twitter.com/a3g6lZTRw8

— Michael Burry Archive (@BurryArchive) October 14, 2021

“Okay, I haven’t done this before, how can one open a short position in cryptocurrency? Do you need to provide a loan? Is there a short rebate? Could a squeeze or a margin call occur? With this volatility I’m inclined to think that it’s better not to short, but I’m thinking aloud here,” — wrote the investor.

Burry has repeatedly criticised cryptocurrencies, называя the market for digital assets an economic bubble.

Last week the founder of Scion Capital rose more than 30% in a day, which allowed him to surpass Uniswap, Avalanche and Litecoin in market capitalization.

“Just to say, one quadrillion seconds is about 32 million years. One quadrillion days is 2.7 trillion years, or all the time since the universe began, multiplied by 71,000. In other words, it’s meaningless,” — wrote him.

Burry was one of the first to predict the collapse of the U.S. housing mortgage market. He bet the entire capital of his Scion Capital hedge fund against mortgage-backed securities CDO and profited from the crisis.

In 2015, based on the book by American writer and journalist Michael Lewis, which chronicles the events of those days, the film “The Big Short” was released. Christian Bale played Burry in it.

Earlier in June, the founder of Scion Capital warned followers about the collapse of the cryptocurrency market, noting that “retail investor losses would be on the scale of countries.”

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