Charlie Munger, Warren Buffet’s right-hand man, is convinced that almost any currency will be worthless within 100 years. “It is natural to reduce the purchasing power of currency,” said the billionaire.
At a conference in Sindney, Munger was asked how he views the current inflation spike. In the United States, inflation came out in October at 6.2 percent. “Almost any currency will be worthless within 100 years,” was his reply. “I don’t trust any currency issued around the world. It is natural to reduce the purchasing power of currency. If you’re a government, slow inflation is the best you can hope for.”
Sharp for crypto coins
That doesn’t mean Munger is a fan of cryptocurrencies as an alternative to traditional currencies. On the contrary, he has never been a proponent of cryptocurrencies. With the regularity of the clock, the billionaire lashes out at digital coins. Earlier this year, for example, he said he hates Bitcoin (BTC) and the “whole damn development is disgusting and against the interests of civilization.”
He continued on that momentum during the conference. Munger said on Friday that China had made the right decision to ban cryptocurrencies. Earlier this year, the country announced a ban on transactions with all cryptos.
“China is taking a very mature stance on cryptocurrencies,” Munger said. He added that he “wants to make money by selling people something that will help them move forward in life, not by selling things that are bad for them. People who invest in cryptocurrencies only think of themselves. They don’t think about the customers. I wouldn’t want any of them to marry a relative of mine.”
Comparison with the internet bubble
During his speech, he even said that he wishes cryptocurrencies had never been invented and that the investment climate created by the emerging technology had reached a level of extremity. Munger made a comparison with the internet bubble of the 1990s. At the time, many internet companies had the wind in their sails on the stock exchange. But that came to an abrupt end in 2000.
“I think the internet bubble was crazier in terms of valuations than what we have now. But overall, I think this era is even crazier than the dotcom era,” he concluded.
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