Cryptocritic: Charlie Munger renews his Bitcoin criticism amid crypto winter: “I think it’s crazy to buy this” | news

• 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 guy, his right-hand man, Charlie Munger, is known for his extremely strong, energetic opinions. Munger regularly shows his deep dislike for various phenomena in the capital market, for example, he recently described the crisis of the controversial American neo-broker Robinhood as “fair”. However, one of the most common targets of his criticism lately is Bitcoin. In an interview with the “Australian Financial Review”, Munger again lived up to his reputation as a crypto-hater.

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Munger calls buying and trading Bitcoin ‘crazy’

Speaking to the Australian Financial Times, 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 these things.” The millionaire had particularly harsh words for entrepreneurs in the crypto industry. There are several greedy players in the industry who make millions selling “worthless digital currencies”. “I think anyone who sells this stuff is either delusional or evil,” Munger said.

Given his open opposition to crypto, it shouldn’t come as a surprise if Munger observes the current crypto carnage, including many bankruptcy filings by major crypto companies like Terra, Celsius or Three Arrows Capital, with little sympathy.

Munger has been one of Bitcoin’s most influential critics – for nearly a decade

But 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 state of the crypto market. His criticism mainly concerns three aspects: the huge volatility, the lack of intrinsic value due to lack of real applications and the frequent use for illegal purposes. Because of these factors, he is proud to have never bought cryptocurrencies.

Speaking at Berkshire Hathaway’s May 2021 shareholder meeting, 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 “abhorrent and contrary to the interests of humanity”, was his devastating verdict. Buffett also expressed his disapproval of bitcoin at the 2022 Berkshire shareholder meeting, largely because he believes it “produces nothing” unlike shares in companies that add real-world value.

Munger welcomed China’s crypto ban

Because of the speculative profits 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 Bitcoin and Co. is, according to Munger, the right decision. “I want to make money by selling people things that are good for them, not bad”. But people selling cryptocurrencies “wouldn’t think about the customer, only about themselves,” Munger said in an interview with the “Australian Business Review” last year. Apparently, little has changed in his opinion since then: in the latest interview, he called on the US law enforcement to regulate crypto, as digital coins posed a major threat to the international world currency system.

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