Famous investor and vice chairman of Berkshire Hathaway, Charlie Munger, expressed his concerns about the recent increase in the price of Bitcoin (BTC), the world's largest cryptocurrency, in a recent interview with the Wall Street Journal.
When asked if Bitcoin's rapidly rising price was a cause for concern, Munger replied: “Of course it worries me.” He explained his basic ideas, which he said he believed every educated person should have. These ideas include the teachings of Adam Smith, the father of modern economics, who emphasized the importance of individuals taking better care of their own property than that of others.
Munger underlined the important role of currencies in facilitating exchange and advancing civilization. “As far as we know, the only way to go from hunter-gatherer to civilization that has ever worked is to have a strong currency,” he said. This currency can take many forms, he noted, from seashells or corn kernels to gold coins and banking system pledges as seen in the US and UK.
However, Munger expressed reservations about the creation of an “artificial currency” like Bitcoin. He likened it to throwing a “stinky marble” at a long-standing recipe that works well for many people. Munger's comments reflect his long-held negative views on Bitcoin and other cryptocurrencies, which he believes could disrupt the established financial system.
*This is not investment advice.