Yes, the ancient Munger from ‘down under,’ and I’m not talking about Australia, recently blasted bitcoin. Like many in his position, people who are invested in business models that are threatened by bitcoin and other cryptocurrencies, I understand why he said what he did.
Munger ‘down under’ has been the longtime business partner of Warren ‘all-day’ Buffet and the vice chairman at Berkshire Hathaway for the last four decades or so. That conglomerate is the largest shareholder of Wells Fargo, which was caught defrauding millions of their customers about a year and a half or so ago. Wells Fraud fired 5,300 employees and was fined $185 million in fiat because they had an incentive program that induced employees to create around 2 million phony accounts. This is typical in the world of central and fractional reserve banking. Fraud is the business model!
Since Berkshire Hathaway (which is a parasitic conglomerate and creates nothing of tangible value) has a large vested interest in Wells Fraud, you could completely understand why Munger, and Buffet, aren’t high on bitcoin, or cryptocurrency in general. Munger recently stated that the incentive structure at Wells Fraud was “too strong in the wrong direction” and asked for regulators to “let up” on the ‘too big to fail’ bank for committing systemic fraud. The balls on this guy have got to be hanging to the floor at his ripe-old age of 94, so the request is not so outlandish when you think about it.
As for his comments about bitcoin, he has claimed that it is “totally asinine and a noxious poison.” Those are pretty harsh words from an ancient man who thinks that a financial system based on creating money from debt, and commits fraud regularly, is a good business model. It has been for him and other parasites for quite a long time, but hopefully most sensible people can see what cryptocurrency offers in the long run, which is a monetary system that is decentralized, secure, and free from parasitic individuals like these two old bats that have made billions from industries like the financial system.
Whether it’s Jamie Dimon, Charlie Munger, Warren Buffet, or Prince Alwaleed who bash bitcoin, it comes from a logical and completely expected angle. They all have ties to large banks and have become very wealthy from a centralized, controlled financial system. So a decentralized, open source, open distributed ledger system does not fit the mold of what they know. It is a system that they can’t control, and they know it!
Image Source: https://qz.com/1179027/mental-models-how-warren-buffetts-billionaire-deputy-became-an-expert-generalist/
Related Sources: https://www.investopedia.com/news/bitcoin-poison-berkshire-hathaway-billionaire-munger/
https://www.reuters.com/article/us-dailyjournal-munger/charlie-munger-urges-regulators-to-ease-off-wells-fargo-blasts-bitcoin-idUSKCN1FY2WE
https://www.nytimes.com/2017/08/31/business/dealbook/wells-fargo-accounts.html
http://money.cnn.com/2016/09/08/investing/wells-fargo-created-phony-accounts-bank-fees/
https://www.nytimes.com/2018/02/02/business/wells-fargo-federal-reserve.html
Tricky.
The idea of "decentralization" and "avoiding a controlled financial system" is not what cryptocurrencies will give us in the long term. Watch, in the coming years cryptocurrencies are all going to crash - Silicon mafia plan all long - then the big tech firms will step in and through "government regulation" narrow down the cryptocurrencies they are behind and created in the first place.
The Pentagon just stepped into Amazon (Bezos & Co.) along with the CIA. People are really clueless what is going on inside Silicon mafia's back offices. And guess who owns most of the btc? These same billionaires create Anonymous (Project Mayhem-2012) to ambush crypto enthusiasts and have thousands of them mining cryptos for the Silicon mafia and their big tech corporations that build the hardware.
Tighten up simpletons, tighten up...