Charlie Munger’s Proudest Accomplishments Avoid Clapping and Cryptocurrencies

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Despite the many millions spent on Super Bowl commercials, this has been a tough week for bitcoin and its fellow cryptocurrencies. Which means it’s a great time for some of his longtime enemies to pile up.

Let’s start with Berkshire Hathaway Vice Chairman Charlie Munger. Offering a glimpse of what awaits Buffett followers in two months, Munger managed to overcomeand that’s saying something, given that he previously called digital currencies “worthless artificial gold” which is demented, disgusting, shameful, antisocial, stupid and immoral, and the equivalent of trading in turds or “freshly harvested baby brains”.

“I’m proud of the fact that I avoided it. It’s like a venereal disease or something,” Munger said. “I just consider it under contempt. Some people think it’s modernity and they welcome a currency that is used in extortion and kidnapping and so on and so on, tax evasion…”.

“I admire the Chinese for banning it. I think they were right and we were wrong to allow it,” Munger added.

And, on the bright side of an otherwise very bleak situation, everything future authoritarian government of this United States might have the courage to finally do what the authoritarian Chinese government has done.

“Inflation is a very serious subject, you could say it’s how democracies die…” Later Wednesday at the annual meeting of the Daily Journal, the publishing and technology company of Munger, he expanded on his comments on inflation by noting that he didn’t know how it would all work in the American context “but we’re flirting with serious problems.”

And, as a result, he doesn’t think much about fiat currencies either, at least if you plan to live as long as he does.

“I think the safe assumption for an investor is that over the next hundred years the currency is going to drop to zero,” he said. “That’s my working hypothesis.”

Anyway, back to those Super Bowl commercials. The head of the Senate Banking Committee, Sherrod Brown, saw them. And the combination of them and seeing his home state Bengals go down to defeat put him in a bad mood.

“The fact that these companies felt the need to advertise is a bit indicative of one of their main claims,” ​​Brown said during the hearing. “If this was really meant to be used as currency, why would you need to buy ads?”

“I don’t think I’ve ever seen, in 40 years of watching the Super Bowl, the Federal Reserve buy a multi-million dollar ad for US dollars,” he added. “That’s because crypto isn’t money. It’s designed for speculation….

“The ads left out some things. They didn’t mention fraud, scams and outright theft,” Brown added. “The ads did not emphasize that you can lose big in huge crypto price swings. They didn’t tell you about the high fees pocketed by crypto companies.

The Financial Stability Board don’t think much of themThat is:

“Crypto-asset markets are evolving rapidly and could reach a point where they pose a threat to global financial stability due to their scale, structural vulnerabilities, and growing interconnectedness with the mainstream financial system,” the report said. . “If a major stablecoin were to fail, it is possible that liquidity within the broader crypto-asset ecosystem (including in DeFi) could become constrained, disrupting trading and potentially causing stress in those markets. This could also spill over into short-term funding markets if stablecoin reserves are liquidated in a disorderly fashion.

Berkshire Hathaway’s Charlie Munger Compares Crypto to a ‘Venereal Disease’ [N.Y. Post]
Inflation may be ‘the way democracies die’: Charlie Munger [Yahoo!]
‘Crypto is not money’: Super Bowl cryptocurrency ads slammed by top Senate Democrat [N.Y. Post]
Crypto could derail financial stability, says Global Financial Watchdog [CoinDesk via Yahoo!]
Bitcoin Price Below $44,000 as Calls for Regulation Grow Louder [Fox Business]

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