The financial community is grieving the loss of Charlie Munger, the esteemed investor and partner of Warren Buffett, who passed away at 99 on November 28.
Munger was celebrated for his impactful role in the investment sphere, particularly at Berkshire Hathaway alongside Buffett.
He was also known for his strong opposition to Bitcoin and other cryptocurrencies.
Munger's aversion to Bitcoin was widely recognized. He famously described Bitcoin as “disgusting and contrary to the interests of civilization.”
His critique of Bitcoin centered on its high volatility and the absence of regulatory frameworks.
Munger was particularly concerned about Bitcoin's use in criminal activities, such as kidnapping and extortion.
He was skeptical about Bitcoin's viability as a global currency due to its instability and advocated for a U.S. ban on cryptocurrencies, highlighting their unregulated and predatory nature.
In a candid interview, Munger expressed his reservations, stating, “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.”
He went on to say, “I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization.”
Despite his criticisms, Munger did recognize Bitcoin's rise, though he did so begrudgingly. “Of course, I hate the Bitcoin success,” he remarked during a Q&A at Berkshire Hathaway's annual shareholder meeting.
Nonetheless, he continued to view Bitcoin as an “artificial substitute for gold”, comparing it to an unattainable pursuit.
The passing of Munger signifies a significant moment in the history of finance. His outspoken views on Bitcoin and other digital currencies have ignited extensive discussions within the financial sector.
As the cryptocurrency landscape continues to develop, Munger's critical perspective remains a poignant reminder of the ongoing debates and complexities surrounding these emerging digital assets.
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