Billionaire Charlie Munger: Cryptocurrency Investments Are Crazy

Charlie Munger, the business partner of Warren Buffett, has called crypto investors “crazy” for investing in nowhere and said that he avoids the industry like avoiding a “dirty cesspool”.

In May, Charlie Munger also called the entire cryptocurrency development process “disgusting” and “against the interests of civilization.”

The main reason behind Munger’s anti-crypto attitude is his belief that cryptocurrencies do not represent anything.

According to Charlie Munger, this class does not give the holder the right to claim a share of the profits from the business, unlike traditional shares. Therefore, it has no foundation. Munger insists the high price is solely due to its popularity and scarcity, which is not a good reason to invest in an asset class.

Munger told the Australian Financial Review:

“Crypto is an investment in nothing. I regard it as almost insane to buy this stuff or to trade in it.”

Instead, Munger values traditional assets and thinks the current stock market slump is not unusual. Interest rates will be more volatile, but the equity markets will bounce back because they have real businesses to back them up.

Some prominent names are adamantly opposed to cryptocurrencies because they claim that it does not represent anything. Munger’s business partner Warren Buffett is the most vocal, while Bill Gates and Peter Schiff also share the same opinion when asked.

In a most recent interview, Buffett addressed the worthlessness of cryptocurrencies by saying that even if he had all of his Bitcoin, he wouldn’t do anything with them but sell them back to others. other.

On the other hand, Bill Gates criticizes the NFT which values are founded on crowd psychology – an argument that mirrors the opinions of Munger and Buffett.

Charlie Munger also mentioned cryptocurrency’s ability to facilitate criminal activities as a reason to throw the whole sector off. Previously, he criticized cryptocurrencies as an “infectious disease” and a “tool for crime”.

He said he hates the success of Bitcoin and added:

“I just avoid it as if it were an open sewer, full of malicious organisms. I just totally avoid and recommend everybody else follow my example.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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