Big Short Burry on Crypto

in crypto •  2 years ago 

Interesting discussion here (some of it!)

Difference between now and 2000 is the passive investing bubble that inflated steadily over the last decade. All theaters are overcrowded and the only way anyone can get out is by trampling each other. And still the door is only so big.

This strikes me as more to the point.

There is an endless amount of fiat derivatives that are playing musical chairs with all asset markets. At some point the music stops, and everyone must find a seat.

And this reply.

This financial game of fiat ponzi has run for about 100 years now. I have said many times that the real black hole in finance is not government debt but derivatives losses. Those "impermanent" losses can be kicked down the road for only so long. The central casinos do not want to go bankrupt, so what they plan is to "change the chips".

What Michael Burry discovered was something I recall thinking at the time - shovelling toxic low-grade mortgages into batches with better quality ones. But what Burry did was gain access to the actual data and proved what others suspected. If he is going to discover anything similar within crypto, he will need to do a similar forensic analysis of where the toxicity is being hidden.

My advice is to look at which blockchain companies are getting investments - not the coins.

(BTW Burry has a habit of deleting his tweets, so any gems, you need to save them.)

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