Munger’s Historic Disdain for Bitcoin
Charlie Munger, the 97-year-old vice-chairman of Berkshire Hathaway, has a long-standing reputation for his sharp critiques of Bitcoin. During the 2021 Daily Journal annual meeting, he reiterated his skepticism towards the largest cryptocurrency, dismissing its viability as a currency. He stated, “I don’t think Bitcoin is going to end up [being] a medium exchange for the world. It’s too volatile to serve well as a medium of exchange.” It seems his stance has softened slightly over the years, but that’s like saying a fire has reduced to a smolder.
A Relentless Critic
In the past, Munger’s comments have been nothing short of scathing. He drew a cringe-worthy comparison between Bitcoin investors and Judas Iscariot, even going so far as to label cryptocurrencies as “totally asinine” and professional traders as “disgusting.” At the 2018 Berkshire Hathaway meeting, he famously compared the crypto market to “trading turds” – a vivid image that’s hard to forget, and not one you’d want to mention at family dinners.
Volatility vs. Stability
The volatility of Bitcoin raises valid questions about its potential as a stable medium of exchange. With ongoing developments aimed at improving scalability, like the Lightning Network, debates about Bitcoin’s reliability will continue. However, Munger has a point when he asserts that while a currency should ideally be stable, BTC’s turbulence makes it a less than appealing candidate for everyday transactions.
The Great Gold Comparison
Munger also weighed in on Bitcoin’s status compared to gold, stating, “It’s really kind of an artificial substitute for gold.” As a man who has never purchased gold (and by extension, Bitcoin), Munger’s advice is clear: if you want to follow in his footsteps, leave the crypto out of your investment portfolio.
Wit Meets Wisdom
With a nod to Oscar Wilde, Munger quipped about Bitcoin, likening it to “the pursuit of the uneatable by the unspeakable.” This clever jab captures his distaste for the crypto fervor that seems to have consumed many modern investors. And steering clear of the Bitcoin fever, he also rejected the idea that the Daily Journal might emulate companies like Tesla in adding Bitcoin to its balance sheet.
Conclusion: A Respect for Tradition
Munger wrapped up his annual meeting remarks extolling the virtues of traditional finance. He posited that “a properly run bank is a great contributor to civilization.” In a world increasingly enamored with digital assets, Munger’s old-school wisdom serves as a reminder that sometimes, sticking to proven principles can yield the best results.
