Charlie Munger, a billionaire investor, is not a supporter of Bitcoin.
(Charlie Munger on Cryptocurrency)
1. How to Understand Charlie Munger's Views on Cryptocurrency
Charlie Munger on Cryptocurrency, during the annual shareholder meeting of the Daily Journal Corporation, of which he is a director, the Berkshire Hathaway vice chairman labeled the type of virtual money “worthless.”
2. How to Analyze Charlie Munger's Critique of Cryptocurrency
Charlie Munger on Cryptocurrency, “Sometimes I refer to crypto as ‘crappo,’ and other times I refer to it as ‘crypto s—.’ “It’s just ridiculous that anyone would buy this stuff,” Munger, 99, told during a livestream of the event, Charlie Munger on Cryptocurrency adding: “It’s totally absolutely crazy, stupid gambling.”
Charlie Munger on Cryptocurrency, Cryptocurrency supporters argue that digital assets provide more privacy, security, faster transaction speeds, and cheaper transaction costs than traditional financial institutions.
But Munger, a lifelong stock investor with a $2.3 billion net worth, isn’t convinced -Charlie Munger on Cryptocurrency. “I think the people who oppose my position are idiots, so I don’t think there is a rational argument against my position,” he went on to say. Munger’s remarks come after a year of difficulties for cryptocurrency investors.
3. How to Evaluate the Risks of Investing in Cryptocurrency
According to Charlie Munger on cryptocurrency, Last year, the cryptocurrency market lost about $2 trillion. One of the most prominent cryptocurrencies, Bitcoin, lost more than 60% of its value by 2022. Furthermore, the implosion of FTX, a now-bankrupt crypto trading platform once valued at $32 billion, has rattled investors’ trust as the sector suffers the repercussions of the company’s demise.
4. How to Navigate the Cryptocurrency Market Amid Charlie Munger's Disapproval
5. How to Formulate a Counterargument to Charlie Munger's Stance on Cryptocurrency
Munger stated that he is ashamed of his nation “for allowing this crap.” Charlie Munger on Cryptocurrency, He has already pushed the US government to outlaw cryptocurrencies, and he may get his way in part as the crypto business confronts increased regulatory scrutiny.
Increased examination of crypto-trading businesses and financial advisors is one of the SEC’s top goals this year, according to the agency’s “2023 Examination Priorities Report.”
The SEC will focus on the “offer, sale, recommendation, or advice regarding trading in crypto or crypto-related assets,” according to the article.
The government agreed on Wednesday to broaden federal laws that, if enacted, may force cryptocurrency exchanges to deposit their assets with a federal or state-chartered bank that will function as a custodian for its clients’ virtual money.
According to SEC commissioner Mark Uyeda, the idea puts crypto companies in a “no-win” situation. Banks in the United States have previously been cautioned by regulators that dealing with cryptocurrency exposes them to a variety of dangers, including fraud and deception.
“In other words, an adviser may custody crypto assets at a bank, but banks are cautioned by their regulators not to custody crypto assets,” Uyeda stated in a blog post.
Legendary businessman and millionaire Charlie Munger, regarded as Warren Buffet’s right-hand man who helped construct investing behemoth Berkshire Hathaway, has died at the age of 99.
Munger’s family told Berkshire “that he peacefully died this morning at a California hospital,” according to a Nov. 28 2023 corporate release.
Munger, who served as vice chairman of Buffet’s business since 1978, had a net worth of $2.6 billion and was frequently recognized for implementing a good investing and stock-picking methodology at Berkshire.
Charlie Munger on Cryptocurrency, While Bitcoin and cryptocurrencies were not Munger and Buffet’s preferred investments, who once referred to Bitcoin BTC tickers are down $39,572
Charlie Munger on Cryptocurrency, Known as “rat poison” and “rat poison squared,” crypto traders can still profit from Munger’s 60 years of financial knowledge. Munger advocated the following investing strategies:
Only invest in what you understand.
When considering a possible investment, Charlie Munger on Cryptocurrency. Munger said Berkshire Hathaway would frequently classify equities into one of three categories.
Charlie Munger on Cryptocurrency, “We have three baskets for investing: yes, no, and too tough to understand.” The latter might explain why Munger and Buffet never invested in Bitcoin and cryptocurrencies, but the main point is that they avoided investing in something they didn’t understand.
Buffet has previously confessed that he and Munger, both tech doubters, were “too dumb to realize” the potential of Amazon’s e-commerce operation in the 1990s and undervalued the company’s founder, Jeff Bezos.
Berkshire did not invest in either Microsoft or Google. “We blew it,” Munger famously stated of the company’s choice not to invest in Google.
Despite this, Berkshire stayed in industries it understood well, such as banking and food and beverage, reaping significant profits from investments in Bank of America, American Express, Coca-Cola, and, subsequently, Apple after originally declining to invest in them.
Munger and Buffet also perfected the art of valuation by scrutinizing a company’s balance sheet prior to making an investment choice, which Munger famously stated was the only sensible way to invest.
“All smart investing is value investing.” “You must value the company before you can value the stock.” While blockchains and protocols are rarely valued using a discounted cash flow model or other traditional methods, on-chain data can provide a wealth of information ranging from the number of daily active users and transaction volumes to total value locked (relative to market cap) and net inflows and outflows, to name a few.
Temperament, not intelligence, is a more important factor in investing success.
Munger was never one to jump into a new trend wholeheartedly, preferring to stay on the more conservative side of investment.
He’s previously stated that many “high IQ” persons are bad investors because they have bad temperaments. “Great investors,” on the other hand, proceed with prudence and deliberate:
“Great investors are always cautious. They consider everything. They are patient. They’re cool. They are not in a rush. They don’t get worked up. They just seek the data and calculate the worth. And that is what we strive for.”
Munger, who has been in the financial industry for almost 60 years, believes that patience is essential for amassing money.
“The big money is not in the buying or the selling, but in the waiting.”
Convince yourself and be prepared to deal with unpredictability.
Munger seen Berkshire’s investment portfolio decline multiple times over the decades, including the 1987 Black Monday crash, the 2007-2008 financial crisis, and, most recently, the COVID-19 epidemic.
“If you’re not willing to react with equanimity to a market price decline of 50% two or three times a century, you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get.” “There will be times when there is a lot of agony and times when there is a lot of boom,” Munger remarked separately. “You just have to learn to live through them.”
Munger was born on January 1, 1924, and died just 34 days before his 100th birthday.
“Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation,” Buffett was quoted as saying in a statement.
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