Charlie Munger, the legendary American investor, billionaire and Warren Buffet right-hand man, has praised the Chinese government for its decision to ban cryptocurrency. Munger spoke about cryptocurrency strategy in China at a Sohn Hearts and Minds event on December 3, the Sydney Morning Herald reports. Report.
It’s not clear exactly what Munger has against bitcoin and other cryptocurrencies, but he shouldn’t have any. “I would never buy a cryptocurrency and wish it had never been invented,” he said during a discussion with Dr. Mark Nelson of a Caledonian hedge fund. In any case, Munger clearly sees no value in a currency in which no one has a monopoly on money journalism. It’s no surprise to consider that he basically made his money in the current financial system.
China made the right decision and my country made the wrong decision
According to Munger, China has done a good job of making it difficult for cryptocurrencies and America has made the wrong decision by tolerating it thus far. “I can’t force myself to keep up with this crazy hype. However, it seems to work; everyone wants to participate and I have a different point of view. I want to make money selling them things that are good for them, not things that are harmful to them,” Munger continued.
The funny fact is that hedge fund Berkshire Hathaway has nearly €20 billion in Coca-Cola and this is the fund that Munger and Buffett have been at the helm for many years. Saying you don’t buy bitcoin because it’s supposedly not good for people and then being a major contributor to a sugar water seller doesn’t seem to resonate with each other.
Bitcoin is a way for many people to escape inflation. A problem that we in the West face relatively little compared to other countries in the world. Saying as an American that Bitcoin has no value depends in large part on a Western bubble. You don’t have to explain to people in Turkey that the Turkish lira is starting to fall, bitcoin can be very valuable.
People who create cryptocurrency think only of themselves
Another statement in Munger and Nelson’s conversation appears to indicate that Munger is particularly concerned about altcoins. “Believe me when I say that the people who create cryptocurrency don’t think of the customer, they only think of themselves,” Munger said. This is a statement that is hard to focus on Bitcoin, because Bitcoin was a perfectly fair launch of the protocol. Months before the launch of the network, Satoshi Nakamoto published the white paper and from the outset, everyone had the opportunity to participate on an equal basis.
For Ethereum, for example, this is a different story. Founder Vitalik Buterin’s cryptocurrency was pre-mine, which means that some Ether was already in the founders’ pockets from the very beginning. Especially when it comes to alternative cryptocurrencies, there are many projects that add a bit of value and are only starting for the founders’ portfolio.
Munger is right about this, but as far as Bitcoin is concerned, this is an argument that doesn’t hold up. Therefore, it is a pity that he did not make this distinction, although perhaps it would be difficult for a 97-year-old to delve into such topics. Especially since Bitcoin is actually a direct critique of the system that Munger has been successful in throughout his career.
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