• Munger is known for strong opinions – especially against Bitcoin
• An investment in Bitcoin is “crazy” – sellers “either delusional or evil”
• Munger supports Chinese crypto ban
While Warren Buffett always responds politely to questions and is considered a friendly fellow, his right-hand man, Charlie Munger, is known for his extremely strong, energetic opinions. Munger regularly shows his deep aversion to various phenomena on the capital market, for example he recently described the crisis of the controversial US neo-broker Robinhood as “fair”. One of the most common targets of his criticism lately, however, is Bitcoin. In an interview with the “Australian Financial Review”, Munger once again lived up to his reputation as a crypto enemy.
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Munger calls buying and trading Bitcoin ‘crazy’
Speaking to the Australian financial newspaper, Munger, 98, renewed his harsh criticism of Bitcoin. “Crypto is an investment in nothing,” according to the investor. “I think it’s almost crazy to buy or trade this stuff.” The millionaire found particularly harsh words for entrepreneurs in the crypto industry. There are numerous greedy players in the industry who make millions by selling “worthless digital currencies”. “I think anyone selling this stuff is either delusional or evil,” Munger said.
In view of his open opposition to crypto, it shouldn’t come as a surprise if Munger observes the current crypto bloodbath, including many bankruptcy filings by large crypto companies such as Terra, Celsius or Three Arrows Capital, with little sympathy.
Munger has been one of Bitcoin’s most influential critics – for almost a decade
However, well before the current crypto winter, Munger sharply criticized the original cryptocurrency: As early as 2013, Munger described Bitcoin, which was still quite young at the time, as “rat poison”. Since then, Berkshire Hathaway CEO Warren Buffet’s longtime friend and business partner has been considered one of the most prominent and influential critics of the crypto world – regardless of the situation in the crypto market. His criticism mainly relates to three aspects: the enormous volatility, the lack of intrinsic value due to a lack of real uses, and the frequent use for illegal purposes. Because of these factors, he is proud to have never bought cryptocurrencies.
Speaking at the Berkshire Hathaway shareholder meeting in May 2021, in the midst of last year’s crypto boom, he explained his sharp disapproval: “I don’t welcome a currency that’s so useful for kidnappers and extortionists and whatnot. I don’t like it when you just hand out a few extra billions and billions of dollars to someone who just invented a new financial product from scratch”. The whole development was “disgusting and contrary to the interests of mankind,” was his devastating verdict. Buffett also detailed his disapproval of bitcoin at the 2022 Berkshire shareholder meeting, largely because he believes it “does not produce anything” unlike stocks of companies that add value in the real world.
Munger welcomed China’s crypto ban
Due to the speculative excesses of digital currencies and the danger to the international monetary system, “Bitcoin should never have been invented,” says Munger. That’s why the Berkshire VP welcomed China’s cryptocurrency ban. A complete ban on trading in Bitcoin and Co. is the right decision, according to Munger. “I want to make money by selling people things that are good for them, not bad”. However, people who sell cryptocurrencies “would not think about the customer, only about themselves,” said Munger in an interview with the “Australian Business Review” last year. Apparently little has changed in his opinion since then: In the most recent interview, he called on the US law enforcement officers to regulate crypto, since digital coins posed a major threat to the international world currency system.
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