Sunday, January 16

Crazier than the dot-com era, says Charlie Munger about cryptocurrencies

Charlie Munger, vice president of Berkshire Hathaway, returned to criticize Bitcoin and cryptocurrencies this Friday (2) during the Sohn Hearts and Minds conference. According to the billionaire, he would like the cryptocurrencies to even exist.

This isn’t the first time Munger has attacked Bitcoin during interview to CNBC in 2018, he claimed that Bitcoin was worthless artificial gold and that it wasn’t something the world needed. At the time, his speech was agreed upon by Warren Buffett and Bill Gates, who were also participating in the program.

In addition to denying the value of Bitcoin and other cryptocurrencies, he also declared that the US should take China’s equal stance and just ban cryptocurrencies as a whole, leaving citizens with no freedom of choice.

Bitcoin is bad for people

Three years after declaring Bitcoin to be worthless, Munger returned to criticize cryptocurrencies, going further than the BTC and referring to the entire industry by saying it’s a crazier era than the dot-com that occurred at the end of the 90’s.

“I think the dotcom boom was crazier in terms of valuations than what we have now. But overall, I think this was even crazier than the dot-com era”

At the age of 97, although Munger experienced the gold standard and dropped it in 1971, the billionaire seems to struggle to believe that Bitcoin is not a good thing for individuals.

“I want to earn my money by selling people things that are good for them, not things that are bad for them”

The fact is that while Munger protects itself from inflation by investing in companies, the vast majority of society still suffers from the devaluation of their money. This effect caused by state control over their currencies, which finance wars, for example, is that they are bad for people.

You have to rule the people, like China

Munger not only doesn’t agree that Bitcoin is worthless, he also believes the US government should ban BTC and all other cryptocurrencies, just as China has done.

“I think the Chinese made the right decision, which is simply to ban [as criptomoedas]. My country made the wrong decision”

In other words, in addition to not understanding that Bitcoin cannot be banned, as the Chinese continue to use BTC, your speech also proves that Bitcoin is something good for society as it manages to make the individual free in financial terms.

“I will never buy a cryptocurrency. I wish they had never been invented”

Finally, while no one is required to buy, accept or use cryptocurrencies, the billionaire says he wishes they had never been created. However, it is important to remember that we do not need to convince these generations to invest in BTC, this is a technology that will be used more by the next generations.