At a board meeting this week, we were lamenting the continued, but predictable, inflationary fiscal practices of the federal government. I jokingly commented that we need to write future contracts in cryptocurrency, to hedge against government mismanagement.
It didn’t get much of a laugh, but I figured it was a great time for a crypto joke. Bitcoin is once again in record territory, fueled by the SEC’s approval to start selling it through ETFs. The news gave cryptos some new credibility.
My crypto hobby stake is up a solid +873% over what I initially paid 6 years ago, when BTC was just $4K. Over that time, the US Dollar’s purchasing power has declined 27% (if you believe the government’s CPI calculations).
While cryptos have been up and down over the last few years, I’m still betting they are a better long-term store of value than government-printed money. After all, the government just ‘magically’ printed over one-third (36.6%) of all the US dollars that exist in the money supply over last few years.
Still negative on cryptos?
Image: Pixabay; Reuters; FRED
MrFireStation 
The late Charles Munger, who was Warren Buffett’s right hand man, and was cited by Buffett himself as making Warren Buffett one of the most successful investors ever didn’t like crypto.
On dodging the crypto craze and subsequent crash: “I’m proud of the fact that I avoided it. It’s like some venereal disease. I just regard it as beneath contempt” – Munger at the 2022 Daily Journal annual meeting
Yes, the US government has been acting like a bad spendthrift spouse since Bush let the deficit spending genie back out of the bottle to fund two stupid wars. Because of the way the Democrats and their controlled government agencies have been relentlessly messing with Trump for 8 years he will be highly incentivized to remake the Federal Government. I am hopeful that we get to hear, “you’re fired” to whole agencies.
It is likely your readers are doing fine. Fiscal restraint is about handing the country over to our children in a better condition than it was handed to us.
LikeLiked by 1 person
I recall you shared another disdainful Charlie Munger quote about cryptocurrencies a few years ago. Munger would be the first to admit Berkshire Hathaway missed quite a few big opportunities in the name of being cautious. With a market cap of $1.2 trillion after 14 years, I don’t find it contemptuous at all.
LikeLike
Charles Munger, Warren Buffett’s partner, wasn’t a fan of crypto. He compared it to a venereal disease and said he was proud to avoid it. He’s critical of government spending, especially during times of war. Munger believes in fiscal restraint to leave a better future for our children.
LikeLiked by 1 person
I certainly agreed with Charlie Munger on his value of small government. With respect to cryptocurrency, neither he or Warren Buffett were big fans of emerging technologies. They made their money on tried and true American brands like Coca-Cola, and McDonalds. Given America’s obesity problem, I’m not sure that’s anything to be proud of either. Had Charlie invested his $2.6 billion in bitcoin on the day he called cryptocurrencies a “venereal disease“, his estate would be worth almost double what it was then. I think Charlie might have thought BTC was dead at that point, but I think it will outlive us all!
LikeLike