Tag: charlie munger

Berkshire Hathaway Vice Chairman says Bitcoin Is Disgusting

Berkshire Hathaway Vice Chairman Charlie Munger did not hold back on his dislike for Bitcoin at the firm’s annual shareholders Meeting.

As reported by CNBC, the billionaire investor said he hated the Bitcoin success, in response to a Q&A about digital currencies in general.

“Of course I hate the bitcoin success,” 97-year-old Munger said. “I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth, nor do I like just shuffling out of your extra billions of billions of dollars to somebody who just invented a new financial product out of thin air.”

Amid the ongoing bull run experienced by the crypto sector, the critics of Bitcoin digital currency are few, with views totally contrary to those held by Bitcoin proponents. While Munger tags Bitcoin as a tool for malicious workers, Bitcoin evangelists like Michael Saylor see it as an idea whose time has come. 

While the majority of Bitcoin proponents laud it as one of the most ingenious inventions of the 21st Century, Munger thinks otherwise.

“I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization,” he said.

At the same shareholders meeting, Warren Buffet, the “Sage of Omaha” noted he did not want to comment directly on Bitcoin for the sake of people holding long on the cryptocurrency. However, Buffet has not been a proven fan of digital currency or any cryptocurrency in general. According to him, cryptocurrencies have no value and he noted he will not be investing in any of them.

The growth of Bitcoin for the past 6 months has however indicated the growing interest in the digital currency. The growth of the cryptocurrency industry has been daunting, with the total market cap surging north of $2 trillion. The uptick has cut across every sector of the industry from decentralized finance, to exchange tokens and Non-fungible tokens (NFTs) among others.

Warren Buffet's Spiteful Comments Sends Bitcoin Tumbling Over the Weekend

Warren Buffett’s scorn for Bitcoin (BTC) received a very broad exposition during the 2022 Berkshire Hathaway Annual Meeting. Known as a long-term critic of the premier digital currency, Buffett reiterated the fact the digital currency has no attached value and that no matter the public embrace, he would not buy the cryptocurrency.

“Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” Buffett said. “It’s got a magic to it and people have attached magics to lots of things.”

In cementing his stance against the digital currency, Buffett compared investments in Bitcoin to that of farming and real estate. 

The billionaire said he could write a $25 billion check each for 1% of the farmlands in the US or to get 1% of the real estate industry as he believes they can produce value in the long run. He said he cannot invest $25 in BTC, noting that he would have to speculatively sell it to make his money back.

The words of Warren Buffet was re-echoed by those of Charlie Munger, his long-term friend and co-executive who also shares a common scorn for the nascent asset class. Munger called Bitcoin evil on three major premises. In his words;

“In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three,” Munger said. “In the first place, it’s stupid because it’s still likely to go to zero. It’s evil because it undermines the Federal Reserve System… and third, it makes us look foolish compared to the Communist leader in China. He was smart enough to ban bitcoin in China.”

The bearish comments sent a massive shockwave into the broader digital currency ecosystem all through the week as the global market cap slumped by more than 1.52% at some point to touch $1.7 trillion. Bitcoin lead the losses as it touched a low price of $37,585.79, the lowest level recorded in the past week.

Exit mobile version