Charlie Munger’s Crypto Contempt: A Review of His Harsh Criticisms on Bitcoin
Remembering Charlie Munger’s Stance on Cryptocurrency
Charlie Munger, the Vice Chairman of Berkshire Hathaway and an investment giant, passed away on November 28, 2023, at the age of 99. Known for his partnership with Warren Buffett in transforming Berkshire Hathaway into a colossal investment firm, Munger was also renowned for his stark opposition to cryptocurrencies, especially Bitcoin. His passing leaves a legacy of strong opinions, particularly in the realm of emerging financial technologies like cryptocurrency.
Munger’s Unyielding Critique of Cryptocurrency
From calling cryptocurrencies a “gamblers’ game” to comparing Bitcoin to “venereal diseases,” Munger never shied away from expressing his disdain for digital currencies. Let’s delve into some of his most notable criticisms:
The Gamblers’ Game Allegation
In a February 2023 article for The Wall Street Journal, Munger described cryptocurrencies not as money, commodities, or securities, but as “gambling contracts” with the house (the issuers) holding all the advantages. He lauded China’s strict crypto ban as the correct approach.
Cryptocurrency as a Venereal Disease
In the same month, Munger labeled Bitcoin as the “crypto shit” and predicted that most cryptocurrencies would eventually plummet to zero. In a 2022 report by Forbes, he likened cryptocurrencies to “venereal diseases,” expressing his utter disdain for the digital assets.
Facilitating Criminal Activities
In May 2021, Munger expressed his disgust at Bitcoin’s success, criticizing its utility for kidnappers and scammers, claiming it damaged civilized society.
Bitcoin: A Financial WMD
Earlier this month, Munger viewed cryptocurrency as a destructive and unproductive invention, disturbing the traditional financial systems, and likened Bitcoin to a “financial weapon of mass destruction.”
Undermining the Financial System
Munger emphasized the role of traditional currency (like shells and gold coins) in civilization but pointed out that Bitcoin, as an “artificial” currency, disrupted the long-standing effective financial system.
Bitcoin’s Inability to Replace Fiat Currency
In 2021, Munger doubted Bitcoin’s suitability as a medium of exchange due to its high volatility.
Bitcoin: The Man-Made Gold
He considered Bitcoin a “man-made” alternative to gold but was uninterested in investing due to his disinterest in gold itself.
Conclusion: Charlie Munger’s Enduring Skepticism
Charlie Munger’s views on cryptocurrency reflected his skepticism of new financial technology and his adherence to traditional financial values. His remarks, ranging from associating crypto with gambling and illegal activities to questioning its role in society, underscore a narrative of caution and conservatism in the face of emerging digital finance trends.
Keywords: Charlie Munger, Cryptocurrency, Bitcoin, Berkshire Hathaway, Warren Buffett, Investment, Digital Currency, Financial Technology, Crypto Criticism
