The Case Against Charlie Munger
The US billionaire profited off a centralised system his entire life. His love for the hand that fed him is so intense that he's now turning into a Communist. And Bitcoin stands in his way.
The Internet is up in arms about the opinions of a 99 year old. Charlie Munger’s age does feature prominently when discussing his "take" on Bitcoin and crypto. I use the term "take" lightly here, because Munger is calling for a complete ban. You know, like China.
Good old Charlie seems to completely lose the plot. Calling those who oppose him "idiots". Munger talks of "crypto shit", of "asocial behaviour" — and while he is certainly right about this in regards to Altcoins, it would be a stretch to call him a Bitcoin maximalist. He is anything but. Munger just doesn't differentiate. He hates Bitcoin just as much as any other crypto. "Rat poison squared". Remember?
What on earth is going on?
Look, I'm completely fine with a man born in 1924 not getting Bitcoin or the difference between Bitcoin and "crypto shit". But why is he so angry? Why would he start praising Communist China? Why the attacks and the profanity?
Looking at his year of birth instead of his age gives us some perspective: Munger was born just 11 years after the Federal Reserve was established. The bulk of his fortune was made after Nixon ended the Gold Standard in 1971. Yes, Munger must have been smarter and luckier than many others, making it to billionaire status. But the fact remains: the man is a direct beneficiary of the biggest monetary experiment in the history of humankind. He's wealth, persona, and world view is built on the "benefits" of the Cantillon Effect.
And Munger has absolutely no plan or reason to change anything. In fact, he seems hell bent on opening a new chapter and pivoting to China, where we have essentially the same monetary system - but this time it's openly communist.
Doesn't it shock you that the "capitalist" Munger has such nice words for this brutal, socialist dictatorship? It shocks me. But I guess it shouldn't. He must feel much more at home there than in the US.
Of course, Munger is already heavily invested in Red China.
No, what is really going on here?
Then there is a second, very simple fact: Charlie Munger has no need for anyone investing in anything other than stocks. US stocks today, Chinese stocks tomorrow. That's the plan we're supposed to follow. Using anything but stocks as a store of value or a vehicle for our savings doesn't make sense for Munger. It doesn't benefit him!
Now I think we can all agree that he never really looked into Bitcoin. But what if he did? What if he does realise that it has the potential to suck all that store of value premium out of stocks?
I think it would shock him.
What if he looks into it and realises that there is absolutely nothing he can do about it — short of a government ban?
I think it would make him angry.
What if he calls for a ban but doesn't get what he wants? What if the government instead starts to clean house, goes against "crypto shit" but leaves Bitcoin untouched — actually strengthening its allure?
I think it would make him very angry.
But here is the thing: Bitcoin is here. It's not going away. The US government won't ban it, because, at the end of the story, Bitcoin really is its best shot at stopping the rise of China, ruining the whole of Munger’s investment strategy for the 21st century.
Now, that would make him livid, wouldn't it?
It's sad and oddly satisfying hearing him kick and scream. But in the end, his opinion is meaningless. Once he gets it, Charlie Munger will still be able to buy more Bitcoin than anyone reading this ever could.
Until next time,
This post is sponsored by…
21bitcoin - The easy way to buy, sell, save and send Bitcoin.
21bitcoin is a Bitcoin-only app, not an exchange. No distractions, individual savings plan, very low fees, first-class personal support, and a German bank account. Based in the Austrian Alps, available throughout Europe. Download now.
Use code “FIXTHEMONEY” to get up to 20% off your fees :)
Not your keys, not your coins! You need a hardware wallet. Check out the Bitbox02 - Swiss-made, secure, beautiful, open source, Tor support, Bitcoin only and all-around awesome!
Use code “FIXTHEMONEY” to get 5% off :)