The Munger Perspective
Charlie Munger, the 97-year-old vice-chairman of Berkshire Hathaway, has never been shy about expressing his distrust of cryptocurrencies. Speaking at the Sohn Hearts & Minds Conference in Australia, he reiterated his skepticism, claiming that the current crypto frenzy is even wilder than the dot-com bubble. “I think the dot com boom was crazier in terms of valuations than even what we have now,” he quipped, presumably with a twinkle in his eye that only a nearly-century-old investor could muster.
Crypto Community’s Response
Unsurprisingly, the crypto community didn’t stay silent. Many online commentators quickly jumped to Munger’s age as an explanation for his lack of enthusiasm towards Bitcoin. After all, the dude was around when the Model T was the hot new thing! As one crypto enthusiast pointed out, “Imagine he is 97 years old… He is just shocked we are pumping 1300% weekly.” A fitting thought, as Munger’s long-held belief in stocks over flashy tech seems to clash with the modern investment mentality.
Munger’s Comments on Chinese Regulations
During his tirade, Munger also expressed his support for China’s crackdown on cryptocurrencies, which he sees as a means to regulate “exuberances” in capitalism. His argument? Those creating cryptocurrencies aren’t thinking about customer welfare but rather about their profits. “I want to make my money by selling people things that are good for them, not things that are bad for them,” he stated, as he tossed a box loaded with Coca-Cola into his shopping cart. Wait, what? You can’t have your syrup and eat it, too!
Reactions from Industry Leaders
Crypto proponents weren’t about to let Munger have the last word. Kain Warwick, founder of Synthetix, took to Twitter to highlight Munger’s contradictory stance regarding health products. After all, Berkshire Hathaway is a significant stakeholder in Coca-Cola—hardly a healthy investment. Meanwhile, Jamil Hasan from The Crypto Corner commented, “I’m okay if Charlie Munger doesn’t buy crypto. I’m certain there are some things that Charlie buys that I don’t need.” Point taken, Jamil!
The Resilience of Cryptocurrency
Despite Munger’s predictions, the crypto market has demonstrated a remarkable ability to rebound from regulatory fears. As tweeted by Blockworks, Bitcoin surged a staggering 5585% since China implemented its first ban back in 2013. So much for the death knell of cryptocurrency!
Bridging Old and New Investments
As investment philosophies collide, it’s clear that there’s still substantial interest from more traditional avenues. Emerging investment giants like SkyBridge Capital are betting big on crypto, increasing their exposure by almost 150% in the last quarter. While Munger may remain skeptical, the winds of change are blowing through the investment landscape.
