According to CryptoPotato, in a recent interview with WSJ, Berkshire Hathaway Vice Chairman Charlie Munger compared the cryptocurrency industry to a dirty prank, calling it a 'stinkball' in finance. Despite acknowledging the disruptive nature of cryptocurrencies, Munger expressed concerns about the introduction of artificial currencies into a long-standing financial system. This is not the first time Munger has criticized cryptocurrencies, as he previously called Bitcoin the 'stupidest investment' he had ever seen.
In response to Munger's comments, some members of the crypto community pointed out that Munger, born in 1924, and his longtime investing partner Warren Buffett have been late to invest in disruptive technologies in the past. They argue that Munger's investment philosophy of 'investing in what you know' may not apply to the rapidly evolving world of cryptocurrencies.
However, for investors who are knowledgeable about blockchain and digital assets, cryptocurrencies like Bitcoin can align with Munger's main investing principles. Those who understand the Bitcoin market cycle have an advantage when investing in crypto, and the Berkshire Hathaway duo also appreciate businesses with durable competitive advantages and talented leaders with integrity. For those familiar with the Bitcoin whitepaper and its pseudonymous author, Satoshi Nakamoto, Bitcoin and some of its competitors may fit the bill.
