Warren Buffet and Charlie Munger are against Bitcoin: Cryptocurrencies are a kind of “venereal disease”
Warren Buffett’s right-hand man and vice-president of Berkshire Hathaway would have liked the United States to ban the use of digital assets, like what China has decided to do.
Charlie Munger, the billionaire investor Warren Buffett’s senior partner, doesn’t mince words when it comes to his feelings towards cryptocurrencies: he despises them.
The 98-year-old drew analogies between cryptocurrencies and sexually transmitted illnesses during a shareholder Q&A session at the Daily Journal Corp annual meeting.
“I have never invested in cryptocurrencies. I am proud to have avoided them. They are a bit like venereal diseases”.
According to CNN, the investor believes that the United States should have banned their use:
“I would have liked them to be banned immediately […]. I admire the Chinese for banning them. I think they were right, and we were wrong to allow them.”
Later in April Munger took even a less measured approach, saying that “in my life, I try to avoid things that are stupid and evil and make me look bad … and bitcoin does all three.”
Warren Buffett, his business partner, has similar views on digital assets. Over the last three years, the billionaire has called Bitcoin a “creative nothing” asset and a “genuine speculative bubble,” describing it as “death-to-death.” squared rats” or a “illusion that draws charlatans.”
“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 of cryptocurrency, as reported by CNBC. “It’s got a magic to it and people have attached magics to lots of things.”
“If you told me you own all of the bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything.”
Despite Charlie Munger’s skepticism, Berkshire Hathaway has recently (indirectly) become involved with cryptocurrency. The investment business stated in a filing on February 14 that it had acquired $1 billion worth of shares in Nubank, Brazil’s largest fintech bank and a hotbed of local crypto investors.
“Investment in Nubank can be seen as a way for Buffett to support the fintech and cryptocurrency world without disavowing its past critics,” explained Greg Waisman, co-founder of crypto wallet service Mercuryo. “Berkshire is now indirectly supporting the digital asset ecosystem.”
Earlier Charlie Munger predicted… Tesla’s failure
On Twitter, Charlie Munger’s comments drew a lot of attention. Tesla CEO Elon Musk said that an investor warned him in 2009 that he was certain his company would never succeed:
User @cryptonator1337, for one, explained to his followers why Charlie Munger was probably not the ideal person to give his perspective on new technologies: