Buffett's long-time partner Charlie Munger, vice chairman of Berkshire Hathaway, passed away on Tuesday local time at the age of 99.
Munger is known for his significant contributions to the investment community and his work with Buffett at Berkshire Hathaway. At the same time, he is also one of the most outspoken critics of Bitcoin and cryptocurrencies.
The phrase “a new financial product born out of nothing” fully expresses Munger's disdain for Bitcoin. He once called Bitcoin “disgusting and contrary to the interests of civilization,” and criticized Bitcoin's extreme volatility and lack of regulation.
He also expressed concern about Bitcoin being used by criminals such as kidnappers and extortionists.
Munger dismissed the idea that Bitcoin could become a global medium of exchange, citing its high volatility. He has even called for the US to ban cryptocurrencies and has publicly praised China's approach to cryptocurrencies on several occasions.
In an interview in 2021, Munger said, “I wouldn't welcome a currency so useful to kidnappers, extortionists, etc., nor would I like to give your extra billion dollars to someone who invents a new financial product out of thin air.”
He further added, “I think I should be humble in saying that this whole damn development is repulsive and runs counter to the interests of civilization.”
Munger adheres to his position that Bitcoin is an “man-made alternative to gold” and likens it to the unspeakable pursuit of something inedible.
His views on Bitcoin and cryptocurrencies have sparked countless debates and discussions in the financial world.
As the cryptocurrency world continues to evolve, Munger's criticism is a reminder that this new form of digital asset still faces enormous challenges and controversy.