Charlie Munger, a millionaire investor and Warren Buffet’s business partner, has made some incendiary remarks against both fiat currency and cryptocurrency.
The 98-year-old vice chairman of Berkshire Hathaway has predicted that fiat money would “degenerate” during the next century.
The senior investor made the remarks in an interview with Yahoo! Finance, which MicroStrategy CEO Michael Saylor picked up and retweeted on Feb. 17. According to Saylor, Bitcoin offers a remedy to failed fiat currencies:
“Like many astute investors, he recognises the issue but is ignorant that we have devised a solution in the shape of bitcoin.
Munger did not explicitly refer to the dollar, but it was very clear what he meant. Inflation is presently at a four-decade high of 7.5 percent in the United States, as the cost of living continues to rise. This indicates that $1 is less valuable than it was last year at this time, and the year before that, and so on. This is primarily due to the dilution of the supply caused by central bank money creation.
According to Saylor, this is a significant support for Bitcoin, although Munger, like his colleague Buffett, is not a fan of cryptocurrencies.
According to Reuters, Munger expressed pride in avoiding crypto’s “venereal sickness,” adding: “I just consider it as deplorable. Certain individuals believe it is modernism, and they applaud a money that is so handy for extortion, abduction, and other forms of tax evasion.”
What he neglected to mention is that cold, hard cash remains the preferred medium of exchange for money laundering, extortion, and tax evasion.
Munger continued his outburst by claiming, “Everyone needs to invent their own new currency, which I believe is also insane,” adding:
“I wish it had been prohibited immediately; I commend the Chinese for doing it; I believe they were correct, and we [the United States] were wrong to permit it,”
Berkshire Hathaway Acquires Nubank Stock
Munger’s firm, Berkshire Hathaway, which he co-chairs with Warren Buffett, has different plans. This week, the world’s seventh-largest firm by market capitalization filed a filing with the Securities and Exchange Commission detailing the acquisition of $1 billion in Nubank shares.
Nubank is a Brazilian digital ‘neobank’ that works outside of regular banking and enables consumers to invest in cryptocurrency-related goods.
Whatever the geriatric billionaires’ opinions about crypto are, smart money is still investing in it at the moment.
Also Read: Cherry Ventures, Based In Europe, Enters The Cryptocurrency Market With A New $34 Million Fund
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