Investment manager

Investment manager expects governments to crack down on Bitcoin, warns of ‘intense’ crypto regulation – Regulation Bitcoin News

Hayman Capital Management founder and chief investment officer Kyle Bass has warned governments will start to really crack down on bitcoin. He predicts that “intense” crypto regulation will roll out of the US Treasury and the Internal Revenue Service (IRS) next year.

Fund manager expects ‘intense’ crypto regulation next year

Kyle Bass, Founder and Chief Investment Officer of Hayman Capital Management, spoke about bitcoin and the outlook for cryptocurrencies in an interview with the Investor’s Podcast Network, published Saturday. Bass is a hedge fund manager who made winning bets on subprime loans in 2007.

While acknowledging that “Millennials love private crypto” and “people like to think of it as a perfect substitute or a great substitute for gold and / or a protector against inflation,” Bass said:

I tend to think you’re going to see authoritarian governments and western democracies start to really crack down on bitcoin.

He referred to China cracking down on crypto activity. “I know China kicked out miners first, then banned private crypto. They did it a year earlier than I expected, ”he said, adding:

I think next year you’re going to see intense regulation coming from the US Treasury and IRS.

He also discussed “discount rates” and how to protect against “this insidious inflation”.

“I know bitcoin has worked well. I know the returns have literally been off the charts for many, and there are a lot of newly created billionaires in the land of bitcoin, ”he noted. However, he warned, “I think the easy money was made… I think from now on it’s going to be really hard to make money there.

Bass also shared, “I have a few private positions in large companies that trade, lend, and develop bitcoin and NFTs. [non-fungible tokens] and the entire digital universe of alphabet soups that exist. He concluded, “I think blockchain, I think NFTs, these things are all here to stay. Private crypto, I put a question mark for the long term. I would pay attention to that now.

The investment manager also doesn’t think we’re in a bubble. “I don’t think we’re in a bubble today, as far as ratios and leverage in the system is a concern,” he said.

What do you think of Kyle Bass’s comments? Let us know in the comments section below.

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