There are several reasons that the Berkshire Hathaway founders hate bitcoin, but a major reason is their ownership of coal power plants and monopoly pricing in regulated energy markets around the United States.
These energy companies and utilities that all roll up to BH are replacing their coal with renewables not because it’s better for the environment, and not because it’s cheaper, but because they get a guaranteed rate of return on their investments to produce power.
Regulators under the guise of consumer protection attempt to cap the margin utilities can charge their constituents. However that simply incentivizes the power producers to produce the highest cost power possible. If you can earn a maximum of a 20% margin, you’d much rather spend $1billion and make $200 million that spend $500million and make $100million to produce the same amount of energy.
Bitcoin brings incentives to produce power cheaper, which of course would benefit all industry, but significantly reduces Berkshire’s ability to grow. Bitcoin would keep the coal plants going, making these companies stagnant in how much cash they can generate. They have to find more expensive ways to produce energy or they cap their growth.
So yeah, Munger can go fuck himself.
willcole /
npub1du…jyf3c
2023-02-09 19:01:12
Author Public Key
npub1du6sgl90wse0cz44fg50a4kg9ea4sgctlxps90ccx58lw8ssgv9qhjyf3cPublished at
2023-02-09 19:01:12Event JSON
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"content": "There are several reasons that the Berkshire Hathaway founders hate bitcoin, but a major reason is their ownership of coal power plants and monopoly pricing in regulated energy markets around the United States. \n\nThese energy companies and utilities that all roll up to BH are replacing their coal with renewables not because it’s better for the environment, and not because it’s cheaper, but because they get a guaranteed rate of return on their investments to produce power.\n\nRegulators under the guise of consumer protection attempt to cap the margin utilities can charge their constituents. However that simply incentivizes the power producers to produce the highest cost power possible. If you can earn a maximum of a 20% margin, you’d much rather spend $1billion and make $200 million that spend $500million and make $100million to produce the same amount of energy.\n\nBitcoin brings incentives to produce power cheaper, which of course would benefit all industry, but significantly reduces Berkshire’s ability to grow. Bitcoin would keep the coal plants going, making these companies stagnant in how much cash they can generate. They have to find more expensive ways to produce energy or they cap their growth. \n\nSo yeah, Munger can go fuck himself.",
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