Charlie Munger’s Concerns about Bitcoin
Charlie Munger, the vice chairman of Berkshire Hathaway and Warren Buffett’s right-hand man, expressed his concerns about the rise in the price of bitcoin. In an interview with the Wall Street Journal, Munger compared bitcoin to a “stink ball” among traditional currencies. He believes that creating an artificial currency disrupts a system that has worked well for a long time.
Munger’s Fundamental Ideas
Munger holds simple fundamental ideas that he believes every educated person should have. He emphasizes the importance of a currency to facilitate exchanges and gain respect widely. According to him, strong currencies are necessary for the development of civilization. It can take various forms such as seashells, corn kernels, gold coins, or promises in banking systems.
“When you start creating an artificial currency…you’re throwing your stink ball into a recipe that’s been around for a long time, that’s worked very well for a lot of people.”
Munger’s Criticism of Cryptocurrencies
Munger has been a vocal critic of cryptocurrencies, particularly bitcoin. He believes that most crypto investments will eventually become worthless. In the past, he has referred to bitcoin as “rat poison” and compared its trading to “trading turds.” He finds it ridiculous that people would invest in such assets and wishes that cryptocurrencies had never been invented. Munger advises everyone to avoid crypto and advocates for governments to ban them.
Hot Take: Charlie Munger’s Disapproval of Bitcoin
Charlie Munger, Warren Buffett’s right-hand man and vice chairman of Berkshire Hathaway, continues to express his disapproval of bitcoin. He believes that creating an artificial currency disrupts the established system and undermines the development of civilization. Munger has been a vocal critic of cryptocurrencies, calling them names like “rat poison” and “trading turds.” He urges people to stay away from crypto investments and wishes that cryptocurrencies had never been invented. Munger’s concerns about bitcoin highlight the ongoing debate surrounding digital currencies.
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