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A look at Charlie Munger’s top anti-crypto comments

TL;DR

  • Charlie Munger, vice-chairman of Berkshire Hathaway, was known for his staunch criticism of cryptocurrencies, often describing them in negative terms.
  • In various interviews and meetings, Munger labeled cryptocurrencies as disruptive, worthless, and akin to gambling, strongly opposing their integration into the financial system.
  • He advocated for the U.S. to ban cryptocurrencies, similar to China, arguing that they do not serve as legitimate financial instruments but rather as gambling contracts.

Charlie Munger, the renowned vice-chairman of Berkshire Hathaway, left an indelible mark not only for his value investing insights but also for his candid, often scathing views on cryptocurrencies.

Munger’s passing at 99 years old brings back into focus his unapologetically blunt criticisms of Bitcoin and its digital counterparts. This article is basically a compilation of the philanthropist’s most striking comments on the subject, showcasing his unwavering stance against the crypto phenomenon.

Munger’s Unfiltered Take on Cryptocurrencies

Munger’s critiques spanned various platforms, each marked by his signature straightforwardness. His comments ranged from labeling cryptocurrencies as “crypto crappo” to outright calling them a danger to the traditional financial system. On multiple occasions, he equated investing in cryptocurrencies to gambling, highlighting their inherent volatility and speculative nature.

In a notable interview with The Wall Street Journal on November 15, 2023, Munger likened the advent of Bitcoin to a “stink bomb” in the sophisticated world of finance. He saw cryptocurrencies as disruptive elements that offer no real productive value.

His criticism was not just limited to Bitcoin; he extended his disapproval to the entire crypto market, underscoring his belief in the superiority of traditional financial systems.

This perspective was further evident during the Daily Journal Corporation’s annual shareholders’ meeting on February 15, 2023. Here, Munger dismissed virtual currencies as “worthless,” using terms like “crypto s—” to express his disdain. He emphasized the absurdity of buying into these digital assets, equating it to reckless gambling.

Advocating for a Crypto-Free America

Munger’s stance on cryptocurrencies wasn’t just critical; it was proactive. In a Wall Street Journal article dated February 2, 2023, he urged the United States to follow China’s lead and implement a complete ban on cryptocurrencies.

He argued that these digital assets do not qualify as money, commodities, or securities but are mere gambling contracts heavily skewed in favor of the “house.”

His reaction to the bankruptcy of FTX on November 17, 2022, during a CNBC interview, was particularly pointed. Munger lamented the involvement of respected individuals in supporting cryptocurrencies, labeling them as harmful and unnecessary, especially highlighting their appeal to criminal activities like kidnapping.

Munger’s critique reached a broader audience when, in an interview with The Australian Financial Review on July 13, 2022, he described the “crypto craze” as a form of “collective madness.” He dismissed cryptocurrency as an “investment in nothingness,” warning people to steer clear of this deceptive lure.

At the 2022 Berkshire Hathaway shareholders’ meeting, Munger expressed his disdain for Bitcoin, citing its potential to destabilize the Federal Reserve system. He questioned the moral and practical aspects of investing in such a volatile asset, which he believed could potentially diminish to zero value.

In his earlier comments, dating back to February 2, 2022, Munger praised China’s decision to ban cryptocurrencies and suggested that the U.S. should adopt a similar approach.

He likened Bitcoin to a “venereal disease” and forecasted its eventual decline to zero. Munger’s consistent anti-crypto rhetoric over the years highlighted his deep-seated skepticism about the digital currency’s role in the financial ecosystem.

Charlie Munger’s unyielding criticism of cryptocurrencies forms a significant part of his legacy in the financial world. His remarks, steeped in his belief in traditional financial principles, offer a stark contrast to the burgeoning enthusiasm for digital currencies.

As the world reflects on Munger’s contributions, his candid opinions on cryptocurrencies remain a testament to his straightforward, no-nonsense approach to investing. Munger’s views, whether agreed with or not, have undeniably sparked conversations and considerations in the ever-evolving landscape of finance.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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