Berkshire Hathaway Vice Chairman Charlie Munger calls cryptocurrency ‘venereal disease’

File image: Charlie Munger

Billionaire investor and Berkshire Hathaway Vice Chairman Charlie Munger reiterated his extremely-hostile and belligerent stance on cryptocurrencies during the annual general meeting of Los Angeles-based publication Daily Journal, a company he has helmed since 1977, managing the newspaper's publisher and software supplier's investment portfolio.

Noting Bitcoin and other cryptocurrencies as "beneath contempt", Munger went as far as deeming the main use for this "apparent modernity" as being limited to "extortion, kidnappings and tax evasion".

Wishing it had been banned immediately, Munger said he admired China for immediately banning it while acknowledging that "we (US) were wrong to allow it". Expressing pride over never having invested in cryptocurrencies himself, Munger considered cryptos as nothing more than "venereal disease".

Munger's disgust and disdain for cryptocurrencies are nothing new. Even last year, during Berkshire Hathaway's annual meeting, he observed that he "hated the bitcoin success", viewing Bitcoin as a worthless asset class that has no underlying asset or value, other than speculation. "I think the whole damn development is disgusting and contrary to the interests of civilization", he continued.

Also Read: Cryptocurrency taxation ‘sovereign right’: FM Nirmala Sitharaman

While his reservations were not as pronounced towards the idea of the US Federal Reserve footing its own digital currency, Munger certainly did not see the utility of it.

“The Federal Reserve could have a currency if they want one. We’ve got a digital currency already, it’s called a bank account. The banks are all integrated with the Federal Reserve system", he noted.

The legendary investor, who is also a close aide of Warren Buffett, also touched upon more issues like inflation and US-China tensions. On inflation, Munger said that "we are flirting with serious trouble, it's possibly the way democracies die. It's a huge danger".

Also Read: The Bitfinex Crypto Heist: All you need to know about the scamster couple

Citing hyperinflation as the main reason why the Roman empire crumbled, Munger cited that printing too much money leads to "terrible trouble". However, he hoped that such a state of consequences might be a long way off for the US.

As for US-China relations, Munger viewed the escalating tensions to be "massively stupid". Per him, "they should like us and we should like them", he said.