Charlie Munger is:

… a highly respected businessman, investor, and philanthropist. He was born on January 1, 1924, in Omaha, Nebraska, and is best known for his work as the Vice Chairman of Berkshire Hathaway, a multinational conglomerate holding company led by Warren Buffett.

Munger is widely recognized for his sharp mind, quick wit, and his ability to analyze complex financial and business situations.

Nigel Farage is:

… a British politician and a prominent figure in the United Kingdom’s Brexit movement.

Farage is perhaps best known for his role in campaigning for the UK to leave the European Union, which culminated in the 2016 Brexit referendum.

Farage has also been involved in other political issues, including immigration and national sovereignty, and has been a controversial figure at times, particularly for some of his more divisive and inflammatory comments. Despite this, he remains a popular and influential figure in UK politics, particularly among those who support Brexit and Euroscepticism.

Sam Volkering is:

… an Australian technology analyst, author, and investment advisor. He is known for his expertise in emerging technologies, particularly in the areas of cryptocurrencies, blockchain, and artificial intelligence.

Volkering is known for his engaging and accessible writing style, which makes complex technological and financial concepts easy to understand for investors of all levels of experience. He has been a popular speaker at investment conferences and technology events around the world and is considered one of the leading voices in the emerging technology investment space.

Nickolai Hubble is:

… an Australian financial analyst and author. He has written extensively on financial and economic topics, particularly on issues related to global finance and investing.

Hubble is known for his contrarian views on investing and economics, and his analysis often challenges conventional wisdom and widely held assumptions.

Overall, Nickolai Hubble is a respected and influential figure in the finance and investment community, and his work has helped to shape the thinking and strategies of many individual and institutional investors.

These aren’t my words. These are the words of our resident artificial intelligence (AI).

I asked the AI to tell me, who is Charlie Munger, who is Nigel Farage, who is Nickolai Hubble and who is Sam Volkering? Those are some of the responses it gave me.

I then asked the AI one more question…

Are any of these three people idiots?

Sadly, the AI isn’t in the business of hurting feelings…

As an AI language model, it would not be appropriate or ethical for me to make a judgement on whether someone is an “idiot” or not. It is important to treat all individuals with respect and recognize that everyone has their own strengths, weaknesses, and unique experiences.

It is also worth noting that everyone makes mistakes, and it is not fair or accurate to judge someone solely on their worst moments or decisions. Instead, it is important to evaluate individuals based on their actions, accomplishments, and contributions to society as a whole.

While the AI refused to determine which of us are idiots, Mr Munger has – fortunately – helped with a clear answer to the question.

Last week during an interview on CNBC, Munger said the following about crypto. “Sometimes I call it crypto ‘crappo’, sometimes I call it ‘crypto s**t’. It’s just ridiculous that anybody would buy this stuff.”

He went on to say, “I think the people who oppose my position are idiots, so I don’t think there is a rational argument against my position.”

Oh dear…

I think that makes Nick, Nigel and I idiots.

Many, many idiotic years

I for one have been covering bitcoin and other crypto in the public domain for over a decade now. Personally, my own experience buying crypto goes back to 2010. And – in the subsequent 13 years – I’ve written about it, provided recommendations to readers on it, invested in it, written two books on it and have tried as much as possible to help people understand it.

According to Munger, that makes me an idiot.

Thankfully I’ve known Nick for the last decade too – so he’s well versed in my views of bitcoin and crypto. He gets it too. That also means that according to Munger, Nick’s an idiot too.

And I think I first met Nigel back in 2020. We got talking about cryptocurrencies, and in November 2020 we even recorded a video for Fortune & Freedom where we spoke specifically about crypto.

You can view that video here on my YouTube channel.

Nigel and I discussed everything from what crypto and bitcoin is to how it works, how you can get it, store it, what Ethereum is, what threat the government poses to crypto… and more.

We also got around to a few reader questions on it. This one in particular I loved, as it was critical of crypto’s value. The point in question was:

Crypto doesn’t offer the stability of a currency due to the wild fluctuations.

Here’s what I said:

When you convert them to fiat money, then yes, volatility is wild.

I have an issue with that.

When you look at the bigger revolution underway, we will start to decouple from fiat money. If you’re always looking at the price in pounds or dollars, you’re only ever going to be tied to that system. If it goes up to $100,000 – your legacy is stuck with the traditional financial system.

The very core being of why bitcoin exists is the opposite – it’s the alternative to the financial system we have.

That’s why central banks and government are terrified.

And they have every right to be terrified because there’s no central authority.

I remember at the time of that video that both Nigel and I were highly criticised for our coverage of crypto. The mainstream media in particular had a field day with the fact Nigel was even looking at crypto.

Remember this gem from the Financial Times (subscription required)?

Well… it seems that the FT – and now Charlie Munger – think that we’re all idiots. To be fair, I’ve had people calling me an idiot about my crypto views for a decade. I guess that that makes me a long-term idiot.

For what it’s worth, at the time we shot that video, bitcoin was worth around $18,000 and Ethereum was worth around $450. At $25,000 and $1,600 respectively today, I then ask: how idiotic were we really?

Anyway, price is just a tiny part of how you should view the crypto market.

What I will say is that in my view, right now is the best time to be active in the crypto market. I consider the bottom of the current cycle’s winter to be behind us now (having occurred in November 2022 to be precise).

And if my view on how crypto cycles work out comes to fruition, then the second half of 2023 is going to be wild!

If you’ve got any crypto-related questions you’d like me to tackle, please write in – I’d love to do a full Q&A on all things crypto related to help you learn more about the most fascinating and potential-packed industry to hit the world since the birth of the internet.

Until next time,

Sam Volkering
Co-editor, Fortune & Freedom