Why Do Munger And Buffet Criticize Bitcoin?
A breakdown of Berkshire Hathaway’s top-12 portfolio holdings and their high correlation with the existing fiat financial service system.
Have you ever noticed people who criticize bitcoin possess one of two key characteristics? 1) They do not understand at all what bitcoin is or why it has value, and/or 2) bitcoin’s success threatens their wealth in the fiat system. Without fail you can categorize 98% of bitcoin criticism into these two categories. It’s really quite astonishing!
Warren Buffet and Charlie Munger publicly criticized bitcoin at the recent annual Berkshire Hathaway shareholders meeting. Buffett is the fifth richest person in the world (in USD) with a net worth of ~$105 Billion USD. Charlie Munger is also a fiat billionaire with a net worth of over $2 billion in USD terms. Buffet is the chairman and CEO of Berkshire Hathaway, and Munger is the vice chairman. Both Buffett and Munger can easily be classified as two of the most successful investors in the last 50 years. When they talk, people listen and for good reason! They are obviously good investors; being among the richest people on the planet tends to give you credibility in that way. Having said that, Buffett and Munger are dead wrong about bitcoin.
Munger’s Thoughts On Bitcoin
During Berkshire Hathaway’s annual shareholder meeting this weekend, Munger criticized bitcoin by stating: “Of course I hate the Bitcoin success … nor do I like just shuffling out a few extra billions and billions of dollars to somebody who invented a new financial product out of thin air.” To me, this quote is very telling.
1) It illustrates both a lack of understanding of what bitcoin is, and
2) a reluctance or anger to have to adopt a new financial model.
“Of course, I hate the Bitcoin success” is a particularly strange choice of words. Why the hate? What has bitcoin ever done to you? My interpretation: Munger has become a billionaire in USD…