When talking about Bitcoin (BTC) Dan Morehead says Berkshire Hathaway’s Charlie Munger is wrong.
In a new letter to investors, Dan responds to Munger’s comments about Bitcoin in a recent interview with the Wall Street Journal.
Munger said that the creation of Bitcoin was the creation of “Divine Currency” is an unnecessary threat to the financial system.
Munger said
“The only way to rally hunter-gatherers into a civilization that we know has ever worked is to have a strong currency. It could be used as shells, corn kernels, it could be many things. It could be a gold coin or it could be a contract in the banking system. Just like we have in the USA and England etc.
“When you start creating divine currency…you are throwing mothballs into a long-standing recipe. It works really well for a lot of people.”
Dan, who oversees $4.2 billion in assets at Pantera Capital, says corn kernels or examples of Munger’s “strong currency” has inflated at exponential rates. This makes wealth preservation impossible in the long term.
“Corn seeds?!?!? wow? Look at the alarming rate of corn seed inflation. In 1961, global corn production was 205 million metric tons, and now it’s 1.21 billion!”
“But for something like Bitcoin, the amount is fixed at 21 million BTC.”
“This is the value of one corn kernel, the price of which has continued to fall by more than 83%.”
“He wanted to store his wealth in a currency that was falling like corn. Or a strong currency that grew on average 117% per year for 14 years.”
Source: DailyHodl
2023-11-26 15:25:25
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