• Munger calls crypto investing a “stupid gamble”
• Ban on cryptocurrencies based on the Chinese model
• Anyone who informs himself sees the perspective – counters Michael Saylor
Charlie Munger described the debacle surrounding the insolvent crypto exchange FTX as a mixture of fraud and deception. He thinks it’s crazy to invest in crypto as it’s an “investment in nothing”.
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In an interview with the broadcaster CNBC at the Daily Journal’s shareholder meeting, the Berkshire Hathaway vice president reiterated his opinion and described crypto investors as idiots. There are also no rational arguments that could invalidate his position, because crypto is “an absolutely crazy, stupid game of chance”, according to Munger. This makes fools of anyone who disagrees with his position.
Warren Buffett’s longtime collaborator called on the US government to ban Chinese-style cryptocurrencies and called Chinese President X Jinping a “smart and practical man.” At the same time, Munger downplayed the threat of a Chinese invasion of Taiwan and reiterated his commitment to Chinese companies: “In China you can buy better, stronger companies at cheaper valuations than in the United States”. Although Berkshire has recently reduced investments in the Chinese market, for example in Tesla competitor BYD and the semiconductor manufacturer TSMC, the billionaire investor was convinced of the future prospects.
“Anyone who contradicts me is an idiot”: Michael Saylor nevertheless urges Charlie Munger to inform himself
A crypto bull who has also linked the value of his company MicroStrategy with his investments to Bitcoin more closely than anyone else is Michael Saylor. In response to the Munger interview, the now former MicroStrategy CEO urged the 99-year-old star investor and other crypto critics (not for the first time) to learn more about cybercurrencies. As members of the “Western Elite”, investors like Buffett and Munger have a ready-made opinion on Bitcoin, Ethereum and Co. without having invested the time actually necessary to inform themselves about the crypto industry. “If he were a CEO in South Africa, Latin America or Asia and put 100 hours into the problems, he would be more bullish on Bitcoin than I am,” Saylor told CNBC Squawk.
In the interview, Saylor also went on to address his calls for regulation of the crypto sector, which he had already formulated several times: “What the industry needs is a supervisor. It needs players like Goldman Sachs and Morgan Stanley and BlackRock in the industry. It needs clear guidelines from Congress. She needs clear rules from the SEC,” Saylor said. The recent crypto crash made him realize that there was a lack of transparency and regulation in the industry. He described the recent slump as “painful, but necessary in the long term” for healthy growth.
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