Charlie Munger Accidentally Makes a Case for Bitcoin In His Attack on Cryptos

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by Mish Shedlock, Mish Talk:

Berkshire Hathaway’s Charlie Munger Calls Bitcoin Stupid and Evil.

Audience Participation

Here’s a great clip of a young high-school age girl asking Warren Buffet for one investment idea at the Berkshire Hathaway annual shareholder meeting.

I partially covered this video in my previous post. In this post I want to cover the Bitcoin angle and statements by Munger.

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Q: “If you had to pick one stock to bet on, which would you choose … in what will likely be a very difficult market?”

Buffett A: “The best thing you can do is be exceptionally good at something. Your abilities cannot be take away from you, inflated away from you. The best investment by far in anything, is develop yourself. It’s not taxed [applause]. That’s what I would do.”

Buffett’s answer was exceptional. Let’s now tune into Charlie Munger’s response.

Avoiding Things That Are Stupid, Like Bitcoin

  • “I’ve got some advice for you too. When you have your own retirement account and your friendly advisor suggests you put all of your money into Bitcoin, just say no.”
  • “In my life I try to avoid things that are stupid, and evil, and maybe look bad in comparison on somebody else. Bitcoin does all three.”
  • “In the first place it’s likely to go to zero”.
  • “It’s evil because it undermines the Federal Reserve System which we desperately need “

Buffett on Bitcoin

Quotes

  • “I should not answer any questions on this subject but I will.”
  • “If you told me you owned all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another.”

I am sure his quotes will be taken out of context. In context,¬†Buffet made an argument that’s at least understandable.

He followed through with comments I disagree with about money, but at least he made statements that were understandable and debatable in contrast to total nonsense from Munger.

Importantly, Buffett made a key point on something I strongly agree with.

Anybody that thinks the United States is going to change the way they let Berkshire Money [an imaginary crypto alternate] replace theirs [the dollar] is out of their mind.

I am a strong believer in a free market for money.

Gold has been money for thousands of years, and arguably still as central banks own it in reserves.

If Bitcoin was adopted I would accept that. But there is no free market in money.

Importantly, if Bitcoin ever threated the central banks they could and would squash Bitcoin into oblivion and it would not even be that difficult.

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