Say this about Charlie Munger, Warren Buffet’s cranky, elderly right-hand man who’s been with him since 1978. He’s not afraid to speak his mind. He despises cryptocurrency, that’s well chronicled, and he’d like to see the United States do what China did and ban it altogether.
His opinion matters since he’s the vice chairman of a fund valued at nearly $700 billion. Berkshire Hathaway has relied on a fundamental approach to investing, and crypto doesn’t fit.
Munger wrote an op-ed in the Wall Street Journal where he didn’t call Bitcoin “rat poison” as he did two years ago, but he’s certainly not a fan.
“A cryptocurrency is not a currency, not a commodity, and not a security. Instead, it’s a gambling contract with a nearly 100% edge for the house… Obviously, the U.S. should now enact a new federal law that prevents this from happening.”
In the past, Munger has referred to cryptocurrencies as “partly fraud and partly delusion.”
He believes investors are suckers and are being taken advantage of by promoters and hucksters.
China banned cryptocurrencies altogether in 2021, and Munger said that’s the one thing China has done recently that he agrees with.
“What should the U.S. do after a ban of cryptocurrencies is in place? Well, one more action might make sense: Thank the Chinese communist leader for his splendid example of uncommon sense.”
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