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Big Short Investor Goes Long On (Some) Crypto; Morgan Stanley CEO Says Crypto is Here to Stay

Bitcoin faced a huge backlash over the past few months of 2021; however, soon after its backlash, it crossed $60,000 recently in just a span of 6 months. Bitcoin is now on track continuing its rallies as the corporations adopt cryptocurrency as well. However, different perceptions and opinions are still driving the investors crazy. 

Big Short Ponders Over How to Short Cryptocurrency

Recently, Micheal Burry, a vocal cryptocurrency critic, raised an open-ended controversy that has invited quite a lot of criticism. Days before bitcoin hit 60,000, he tweeted, “How do you short a cryptocurrency?” Yet the tweet was deleted immediately, and he deactivated his account as well, as a “rage quit” to the responses he was receiving. At the time of the tweet, Bitcoin was worth $58,000, and since then, it has gained a 7% value and has crossed $62,000.

In the recent news by CNBC, Michael Burry, The Big Short, has clarified, he has not been shorting bitcoins or other currencies, which has taken aback every crypto enthusiast as the claims do not match with the label he’s entitled with. His metaphorical stance on cryptocurrency being in a bubble has also made caused a tumult among the investors, for he believes this speculative bubble can burst anytime.

“I’ve not been shorting cryptocurrencies at all. And I’m not now … I believe that cryptocurrencies are in a bubble and that most in it do not understand it well.”

But why does it matter? Well, Michael Burry, an American investor, has been in the light ever since he predicted the financial crisis of the housing market and made a fortune over this bet which also served as the basis for the book “The Big Short” by Michael Lewis. Therefore, his claims and prediction have a significant influence on the digital community.

James Gorman Foresees the Progressive Future of Crypto

During the bank’s third-quarter earnings call with the investors, James Gorman, CEO of Morgan Stanley, said crypto isn’t a fad, neither is it going away, despite not seeing many clients’ demands. According to his conviction, blockchain technology is really strong and powerful, basically supporting all the digital assets. James passed these claims when the equity analyst asked what the bank’s response to the clients regarding the digital assets is.

“I don’t think crypto’s a fad, I don’t think it’s going away,” Gorman added. “I don’t know what the value of bitcoin should or shouldn’t be, but these things aren’t going away and the blockchain technology supporting it is obviously very real and powerful.”

Morgan Stanley is one of the first banks to offer and accept cryptocurrency. The bank does not offer direct trading for the retail crypto but gives full access to crypto through the various funds that are being offered. According to Morgan Stanley executives, crypto isn’t really the major part of their bank, but they still believe it has the potential to thrive in the future. 

“We’re watchful for it, we’re respectful, and we’ll wait and see how regulators handle it.”

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