Vice President of Berkshire Hathaway, Charlie Munger, describes cryptocurrency as a "venereal sickness."

  • Feb. 17, 2022, 11:14 a.m.

Billionaire investor and Berkshire Hathaway Vice President Charlie Munger reiterated his extremely hostile and belligerent stance on cryptocurrencies during the annual general meeting of the 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 to deem the main use of 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 a "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.

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

"The Federal Reserve could have a currency if they wanted 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 to 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. "

Citing hyperinflation as the main reason why the Roman empire crumbled, Munger noted 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 as "massively stupid." Per him, "they should like us and we should like them."

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

Related News