Bitcoin News: Charlie Munger Compares Bitcoin to a 'Stink Ball'

Munger’s Fundamental Belief in Stable Currency
The Role of Stable Currency in Civilization
Munger’s Ongoing Critique of Cryptocurrencies
Reiterating Strong Disapproval
Advocating for Avoidance and Prohibition
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In a recent interview with the Wall Street Journal, Berkshire Hathaway’s Vice Chairman, Charlie Munger, once again voiced his concerns about the increasing value of Bitcoin. Munger, a 99-year-old financial sage and close advisor to Warren Buffett, likened the world of cryptocurrency to what he humorously referred to as a “stink ball” in the realm of traditional currencies.

Munger’s Fundamental Belief in Stable Currency

During the interview, Munger was asked about his views on Bitcoin’s recent price surge, to which he responded, “Of course, it concerns me.” He proceeded to explain his fundamental belief in the significance of having a stable currency to facilitate economic exchanges. Munger stressed the importance of having sovereign-backed currencies that have stood the test of time.

The Role of Stable Currency in Civilization

Munger expounded on this point, saying, “The only historically proven way to transition from a hunter-gatherer society to a civilized one is to have a robust and widely accepted currency. Whether it’s in the form of seashells, corn kernels, gold coins, or modern-day banking systems supported by sovereign nations like the United States and England, the currency’s stability is paramount.” He underscored the need to respect the traditional currency systems that have been successful for generations:

“When you introduce an artificial currency into the mix, you’re essentially introducing a ‘stink ball’ into a recipe that has proven successful for countless people over a significant period.”

Munger’s Ongoing Critique of Cryptocurrencies

Charlie Munger has been a vocal critic of cryptocurrencies, with Bitcoin being a particular target of his skepticism. He has previously predicted that crypto investments would likely diminish in value and famously referred to Bitcoin as the “stupidest investment” he had ever encountered.

Reiterating Strong Disapproval

His past comments include characterizing Bitcoin as “rat poison” and describing its trading as akin to “trading turds.” In February, he expressed his disbelief in Bitcoin, stating, “It’s just ridiculous that anybody would invest in this. It’s indefensible, and it’s a disgrace that so many people have faith in such nonsense while the government permits its existence.”

Advocating for Avoidance and Prohibition

Last year in July, Munger declared his aversion to cryptocurrency, advising everyone to “steer clear of it as if it were a contaminated sewer.” He also compared cryptocurrencies to a “venereal disease” and advocated for governmental bans, expressing regret that cryptocurrencies had ever been invented. He stated, “The entire development is repulsive and goes against the interests of civilization.”

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