Bitcoin is ‘disgusting and contrary to the interests of civilization’ says famed investor Charlie Munger
- Reference: 1620014466
- News link: https://www.theregister.co.uk/2021/05/03/berkshire_hathaway_annual_meeting_tech_highlights/
- Source link:
Munger’s opinion is significant because he and Berkshire Hathaway CEO Warren Buffett have for decades out-performed other investors by creating a diversified conglomerate. Munger also doesn’t speak a lot in public: last weekend’s Q&A at Berkshire Hathaway’s annual shareholder meeting is one of the few times a year he and Buffett share their thoughts.
According to a [1]transcript of the meeting, a shareholder asked Buffett and Munger if they “still consider cryptos as worthless artificial gold?”
[2]
[3]
[4]
Buffett waived off the question, but Munger waded in.
“I hate the Bitcoin success and I don’t welcome a currency that’s so useful [for] kidnappers in our stores and so forth,” he said. “Nor do I like just shuffling out a few extra billions and billions and billions of dollars to somebody who just invented a new financial product out of thin air.”
“I think I should say, modestly, that I think the whole damn development is disgusting and contrary to the interests of civilization, and I’ll let leave the criticism to others.”
[5]
Robinhood, the investment app that sent shares in [6]ailing retailer GameStop soaring , also got a roasting from Berkshire's nonagenarian execs.
Buffett suggested the app’s success can be attributed to “people who know how to take advantage essentially of the gambling instincts of, not only American public, worldwide public,” and questioned its financial underpinnings.
“If you cater to those gambling chips, when people have money in their pocket for the first time, and you tell them they can make 30 or 40 or 50 trades a day, and you’re not charging them any commission, but you’re selling their order flow or whatever, I hope we don’t have more of it.”
[7]
Munger was rather blunter.
“I think it’s just God awful that something like that would draw investment from civilized men and decent citizens. It’s deeply wrong.”
Moneybags Buffett on ditching Oracle stake: I don't think I understand where the cloud is going [8]READ MORE
Asked why Berkshire Hathaway sold Apple stock in 2020, Buffett admitted making an error.
“A car costs $35,000, and I’m sure with some people, if we asked them whether they had to give up their Apple or give up their car, and really make the choice for the next five years, who knows what they do?”
Buffett and Munger both heaped praise on Apple supremo Tim Cook, saying that while he is no Steve Jobs he has done extraordinarily well at creating shareholder value.
The pair also laughed off US senator Josh Hawley’s [9]proposal to prevent all mergers and acquisitions by companies above a certain size, on grounds that while it is aimed at Big Tech it would also impact Berkshire Hathaway.
Microsoft, Facebook, and Google also scored mentions, with the pair rating them superior businesses to Berkshire because they have comparatively little need for property, plant, and equipment, when considered against other businesses.
Elon Musk also rated a mention, with Berkshire vice-chair Greg Abel opposing the SpaceX and Tesla CEO’s plan to build a giant battery in Texas to safeguard energy supplies.
Abel rated Berkshire’s plan to create gas generators as superior to a battery because it will be designed to operate for seven days, rather longer than the Musky one’s battery.
Buffett was even asked if Berkshire Hathaway's insurance businesses would offer cover for a crewed SpaceX Mars mission.
“I would say it would depend on the premium,” he opened, adding "I would say that I would probably have a somewhat different rate if Elon was on board or not on board. I mean, it makes a difference. If somebody is asking you to insure something, that’s called getting skin in the game.” ®
Get our [10]Tech Resources
[1] https://www.rev.com/blog/transcripts/warren-buffett-berkshire-hathaway-annual-meeting-transcript-2021
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YI-Jw7rqR3IzNBXwX6dgtQAAABA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YI-Jw7rqR3IzNBXwX6dgtQAAABA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YI-Jw7rqR3IzNBXwX6dgtQAAABA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YI-Jw7rqR3IzNBXwX6dgtQAAABA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2021/01/28/robinhood_blocks_trades/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YI-Jw7rqR3IzNBXwX6dgtQAAABA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2019/02/26/buffett_dont_understand_cloud_oracle/
[9] https://www.theregister.com/2021/04/13/hawley_antitrust_bill/
[10] https://whitepapers.theregister.com/
Re: Insert meme here
More of a pot calls kettle black vibe.
Re: Insert meme here
Not really. There seems to be a growing swell of vocal opposition to cryptocrap, El Reg is simply reporting another instance and padded the article with other comments.
Personally, I cannot think of a single thing fake gold adds to society. Other than another opportunity for a few to get rich at the expense of others, society was desperately short of these. They should be banned globally just for the carbon footprint.
Re: Insert meme here
Just like our wonderful FIAT money you mean....!
Re: Insert meme here
At least fiat money doesn't take an increasing number of power stations to make.
Re: Insert meme here
That's rather the point - Fiat money doesn't take anything to produce. The rate of supply of the currency is arbitrarily controlled by someone who is not you.
Re: Insert meme here
Quote
"Fiat money doesn't take anything to produce. The rate of supply of the currency is arbitrarily controlled by someone who is not you."
The same can be said for bitcoin, although the supply of the currency is more tied to the number of GPUs a miner can attatch to a PC.
Which brings us to a fundlemental law of economics
"An asset is only worth what someone else is willing to pay for it"
This applies to anything, shares, gold, FIAT money, bitcoins, dutch tulip bulbs, and graphics cards.
EG I paid 1400 for a new pc with a 3060ti card in it, listing the card on ebay I can easily make 1000-1200 for the card alone, its only worth 400-500.. but someone will be willing to pay 1000 for it as it can mine bitcoins.
Same goes for my house, 200 000 I could get for it, but its physical worth is about 80 000.
The real trick is to cash out at the top of a bubble and not be caught holding an asset when the price collapses (although if bitcoin collapses, that will make the gamers very happy to get cheap GFX cards again.)
PS Bitcoin here represents any of the crypto-currencies.. so dont get your knickers in a twist
Re: Insert meme here
The maximum number of Bitcoins is arbitrarily limited. And ultimately, all Bitcoins will end up locked forever in a wallet whose password was lost.
So yes, I'm opposed to literally burning vast amounts of energy merely to produce currency. Currency is a symbol of value to make exchanges easier. If the currency holds the cost itself, that's barter, and we don't need currency for that.
Re: Insert meme here
> There seems to be a growing swell of vocal opposition to cryptocrap,
There does *seem* to be a swell of opposition, does there not? It was interesting to have someone in the pub come over and point at the Daily Express on their phone: a cheery announcement about 'BRITcoin' next to a headline about Bill Gates supposedly slamming Bitcoin but which infact was an 'article' recycled from vague things he said in 2016.
The swelling of criticism regarding the energy consumption of Proof of Work crypto is likely genuinely felt by many folk. However, that may be due to seeing the status quo in a more favourable light than it deserves.
I hate the Bitcoin success and I don’t welcome a currency that’s so useful [for] kidnappers in our stores and so forth
Says old man who missed the Bitcoin boat and doesn't like other people investing and making money without him getting his cut.
As for the second part, I'm pretty certain suitcases of cash are still far more useful for actual, real kidnappers.
Here is another old man who missed out:
https://www.johnkay.com/2018/03/05/bitcoin-boon-bubble/
Bitcoin analysis (stolen from Twitter)
"Imagine a child's concept of an evil businessman. He plugs in his pollution machine to make money. It doesn't do anything for anybody, just pollutes and then he gets money for it."
Does anyone else picture Charlie Munger as looking like Mr Burns from the Simpsons after reading this article?
If not crypto...
...how else will we transfer economic dominance to China?
Even western countries will tire of plastic trinkets eventually. Possibly.
Hmm ...
I must be getting old.
I had assumed the "Guinea" was still the preferred unit for legal fees, financial transactions, bribes and ransom demands.
Insert meme here
While I share quite a bit of their cryptocoin distaste, was it just me who had this "Old Man Yells At Cloud" vibe throughout this entire article?