Warren Buffet and Charlie Munger are indirectly promoting Bitcoin

Warren Buffet and Charlie Munger are indirectly promoting Bitcoin


2021-05-05 11:53:26

* Note: the article is based on the author’s personal opinion, not considered an investment recommendation *

Warren Buffett and Charlie Munger continue to indirectly promote Bitcoin

Berkshire Hathaway’s Annual Shareholders Meeting was held last weekend. Due to the COVID-19 pandemic, the event was held online. If you haven’t, you can watch it again on YouTube.

In the world of Bitcoin, Warren Buffett is hated by many investors.

However, we cannot hide the fact that he remains one of the greatest investors in history. So let’s listen to what he says even if we disagree with what he thinks about Bitcoin.

Like everyone else, Warren Buffet made mistakes.

It is always interesting to hear what Warren Buffett and Charlie Munger have to say

At this annual Berkshire Hathaway event, Warren Buffett and Charlie Munger gave comments on their businesses, the different companies they own, as well as other insights about the top philosophy. private.

The fact that they’ve built a massive investment empire worth $ 630 billion is impressive. It helps Warren Buffett to achieve a fortune of more than $ 100 billion while Charlie Munger is about $ 2 billion.

As everyone thinks, several journalists took this opportunity to keep asking Warren Buffett and Charlie Munger what they think about Bitcoin and cryptocurrencies in general.

Journalists suspect that the Sage of Ohama and his longtime partner have yet to change their stance on Bitcoin, which Warren Buffett has called a “rat killer” in the past. However, creating unnecessary controversy to sell and attract new investors is probably part of their job.

Currently, Buffet does this quite successfully.

Bitcoin attracts billionaire investors

Warren Buffet is pondering, while Charlie Munger is still attacking Bitcoin directly

For the first time, Warren Buffet gave an answer that brought mixed emotions:

“I know there will be a question about bitcoin. Well, I’ve seen politicians dodge questions for them all the time, you know, I find that disgusting. But the truth is I would dodge this question because there may be hundreds of thousands of people watching this show own Bitcoin, and maybe two people short Bitcoin. So my answer can make 400,000 people angry, unhappy and make two people happy, which is a difficult thing. “

Warren Buffett is still opposed to Bitcoin, but now he realizes that he is increasingly isolated in this position. That wouldn’t change his mind, as it was part of his investment principle: “never follow the crowd blindly.”

However, he didn’t want to talk about Bitcoin to avoid fighting against the growing number of investors supporting the king of digital money.

Charlie Munger is more openly opposed to Bitcoin:

“Of course, I hate the success of bitcoin and I don’t welcome a digital currency that helps kidnappers and blackmailers, and so on. So I think I should humbly say that the whole damn development is disgusting and goes against the interests of human civilization. “

Their objections to Bitcoin are not illogical when you remember that two investment geniuses do not understand the world of technology

Charlie Munger continues to be blinded by the outdated anti-Bitcoin arguments. Many researchers have proven that using Bitcoin is harder than the US dollar in illegal activities.

Munger went on to explain that he felt disgusted by the success and growing popularity of Bitcoin.

The fact that Warren Buffett and Charlie Munger continued to fiercely criticize Bitcoin to me seems to be a good thing for cryptocurrencies in general and Bitcoin in particular. They are two representatives of the previous generation. This generation is rarely updated to understand new technologies.

Berkshire Hathaway missed the change of Google, Amazon, Apple, and Facebook in the early 2000s. Warren Buffett and Charlie Munger later compensated by buying Amazon, but that was also missed opportunity. mine.

Berkshire Hathaway has no longer captured the stock market

These two investment geniuses do not adapt to the changes of the world. Since the 2008 economic crisis, Berkshire Hathaway has been beaten by the Nasdaq and S&P 500 in performance:

warren buffet

Of course, Berkshire Hathaway has nothing to be ashamed of with + 388% growth, but the S&P 500 is + 444%, while the Nasdaq is at + 848%.

Warren Buffett and Charlie Munger seem to have lost the tools to crack the stock market, and newer rules have been in place since tech companies were born in the early 2000s.

Their constant and strong outcry was indirectly a perfect promotional campaign for Bitcoin

The fact that these two investment legends are unable to stop the technology wave in the financial markets means they won’t be able to stop Bitcoin’s inevitable rally in the coming years. In a world where everything is digital, Bitcoin’s success is inevitable.

Faced with the wave of monetary inflation that we are experiencing, Warren Buffett and Charlie Munger chose to do nothing, while Berkshire Hathaway had more than $ 145 billion in cash.

As antagonists of gold, they are clearly not going to invest in this precious metal. The switch to the Bitcoin alternative to gold in practice is also not an option. Their mountain of cash will depreciate rapidly, but both foresight investors are taking no action.

Warren Buffet
Warren Buffett

Instead, Warren Buffett simply came up with a phrase that has helped him be successful for decades:

“Never go against America”

The US is likely to recover stronger from the economic crisis, but the current monetary system’s flaws will persist. The fact that Warren Buffett and Charlie Munger choose to do nothing says a lot about their thinking. They are afraid to develop and adapt to a new, fairer system, Bitcoin.

Because of its core, the fear Warren Buffett and Charlie Munger repeatedly express about Bitcoin represents an entire generation of people who have gone ahead refusing to hand over their wealth to new generations – who have embraced it. receive the Bitcoin revolution.

This fear is an effective, at least indirect, promotional campaign for Bitcoin.

I’ve always said that you shouldn’t invest by blindly chasing others. This also applies to buying Bitcoin. So listen to the criticisms of Warren Buffett and Charlie Munger, but look no further. If you can do that, you will understand what is behind it: the fear that Bitcoin will create a fairer system for many.

Next time you hear protests against Bitcoin from the old generation, think of it as a sign that Bitcoin is a once-in-a-lifetime opportunity that you should definitely embrace.

If you do not have a Binance account, register here: https://CHK.com/go/binance

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