Charlie Munger Expresses Concerns Regarding the BTC Price Jump
- Charlie Munger, the right-hand man of Warren Buffett, shared concerns regarding the Bitcoin price surge.
- “Of course it worries me,” said the entrepreneur in an interview with The Wall Street Journal (WSJ).
- He compared BTC to throwing a “stinky marble” at a long-standing recipe that works well for many people.
- The Berkshire Hathaway VC advised the US government to ban cryptocurrencies similar to China.
Charlie Munger, an American businessman and vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett, has expressed his concerns regarding the recent surge in the price of the world’s largest cryptocurrency, Bitcoin (BTC). The leading digital asset surged close to 30% in the past 30 days and is up almost 65% in the past year.
In an interview with The Wall Street Journal (WSJ), Warren Buffett’s right-hand man and one of his closest friends, Charlie Munger, stated that the recent increase in the price of Bitcoin is cause for concern. “Of course it worries me,” said the entrepreneur in the interview. He also highlighted the important role that currencies play in facilitating exchange and advancing civilization.
Meanwhile, Charlie Munger also explained his basic ideas, which he said every person should know. These ideas include the teachings of Adam Smith, the father of modern economics, who refuted the distribution of wealth by God and appealed to natural, political, social, economic, and technological factors and the interactions between them.
“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.
Charlie Munger implied that the usage of Bitcoin as a means of payment is concerning. He said that currencies have evolved over the years from seashells or corn kernels to gold coins and banking systems, as seen in the United States and the United Kingdom. However, he remains skeptical of an “artificial currency” like Bitcoin, comparing it to throwing a “stinky marble” at a long-standing recipe that works well for many people.
As reported earlier by BitcoinWisdom, Charlie Munger has been a critic of Bitcoin for quite some time. The entrepreneur advised the US government to ban cryptocurrencies like China did, noting that a lack of regulation has created a gambling mentality. He added that Bitcoin “doesn’t have any intrinsic value,” while adding that “the urge to participate in something that looks like easy money is a human instinct that was always there.”