Charlie Munger is one half of the Warren Buffett/Charlie Munger team that has been the most successful investing partnership of all time. He is reported as saying,
‘[Bitcoin investors] Celebrate the Life and Work of Judas Iscariot’
Judas Iscariot betrayed Christ leading to his death. This is the latest in a long line of quotes from the Berkshire Hathaway team that disparage cryptocurrencies. I am certain that Buffet and Munger dislike cryptocurrencies because of the huge level of fraud, wrong-doing and plain stupidity that infects the industry. But, there is also another reason.
They are part of the regulated financial establishment that believes that ordinary people can’t be trusted with their money because they will lose it. This is obviously true and our highly-regulated system has served ordinary people well. Never in the history of mankind have so many people’s saving and pensions been so secure.
But nothing comes for free.
Financial businesses have been given highly regulated monopolies in exchange for keeping voters funds safe. Bankers are paid more than other professions not because they are cleverer or produce more value (although they probably are and usually do) but because regulation creates an oligopoly that can extort high fees for its services.
My own “conversion” to Bitcoin was when I realised that migrant workers were being charged tens of dollars to send currency back home but that Bitcoin shows the true cost of this is a few cents. The difference is extorted from the poorest in our society by the richest. There are now many cryptocurrency businesses working to make it cheaper to send money.
Cryptocurrency developers are traitors, but they are betraying the Financial Establishment not the People who it is meant to serve.