The digital asset space, which is becoming more significant daily, continues to face some external challenges as governments might not completely approve of the innovation. Other countries like Nigeria and India have taken steps to prohibit and not regulate the booming industries due to some well-known reasons. Some countries choose to outlaw the asset because of economic reasons, while others prevent issues of money laundering and other illegal activities.
Another financial expert, Michael Burry, predicts that the government would outlaw Bitcoin because of economic reasons, especially since more investments are moving into the decentralized financial system. He also mentioned that the government might squash gold alongside the crypto.
Burry believes Bitcoin would cause an inflationary crisis
The popular hedge fund manager got his fame from predicting the 2008 housing bubble. The manager made millions from the housing crisis that occurred in 2008, and he again makes another prediction concerning two of the most popular investments in the world today.
The crisis was made into a movie called The Big Short, based on the unexpected incident. The expert said the two investments would cause inflation via Twitter before eventually deleting his tweet. He said that reopening and stimulus on the way and that governments might need to remove some currency competitors while mentioning gold and Bitcoin.
The expert has his Twitter name as Cassandra, which makes people understand his confidence. The prescription concerning dollar, Bitcoin, and inflation has continued to fill the space, with people imagining the digital asset’s effect on countries. Burry is not the only one who thinks that gold and Bitching would lead to an inflationary crisis. Other influencers have also mentioned that the present rise in crypto investment could adversely affect a country’s economy.
Fortunately, those who understand Bitcoin know it as digital gold because it is deflationary due to the limited supply, thereby helping investors to gain even as the dollar declines. This conclusion explains that gold or Bitching does not cause inflation and that Burry might be wrong with his latest prediction.
The current Bitcoin trend leads to increasing oppositions
The crypto space got some inspirational buyers last year. These buyers skyrocketed the digital asset space with their heavy investments, making Bitcoin rise in value, thereby making the digital asset industry very attractive to others. The new attraction is not ending anytime soon as there is presently an institutional trend for Bitcoin because of Tesla’s new investment.
It’s also unlikely for the dollar to lose its purchasing power, even as the country’s currency faces inflation due to the COVId-19 that caused many economies’ problems. Still, Bitcoin critics share this theory to bring some controversies into the space concerning the digital asset.
In 2008, many experts also believed that the high governmental spending would cause inflation, but others believed that spending would help the economy gain some stance. Larry Summers had opined that governmental spending aids the economic problem, while other experts even argue against that claim. What is sure to most is that cryptocurrencies are gaining some influence in the global society.