Charlie Munger calls bitcoin ‘disgusting and contrary to the interests of civilization’

Charlie Munger at the Berkshire Hathaway Annual Meeting in Los Angeles, California. May 1, 2021.

Gerard Miller | CNBC

Charlie Munger’s dislike of Berkshire Hathaway vice chairman for Bitcoin only intensified in the wake of the digital asset record run this year.

“Of course I hate Bitcoin success,” said 97-year-old Munger during a question and answer session at Berkshire’s annual general meeting on Saturday. “I don’t welcome any currency that is so useful to kidnappers and extortionists, etc., and I also don’t like it when you mix your extra billions of billions of dollars on someone who has just invented a new financial product out of nowhere.”

“I think I should humbly say that the whole damned development is disgusting and contrary to the interests of civilization,” said Munger, himself a legendary investor.

Warren Buffett, who earlier avoided the initial question about Bitcoin, replied to Munger’s reply, “I’m fine with that.”

The “Oracle of Omaha” said he did not want to comment directly on the digital token because he did not want to get grief from anyone who is long.

The world’s largest cryptocurrency saw a rapid rally this year, topping $ 60,000 apiece in April, when Tesla’s stakes in major Wall Street banks made bitcoin mainstream. Tesla recently placed a $ 1.5 billion bet on Bitcoin and is now accepting digital currency as a payment method for its cars. In the meantime, Goldman Sachs and Morgan Stanley would like to offer their high net worth clients some exposure to Bitcoin.

Bitcoin last traded above $ 57,000, up from $ 30,000 in early 2021, according to Coin Metrics.

Munger has long criticized Bitcoin for its extreme volatility and lack of regulation. At the Daily Journal’s annual general meeting in February, Munger said Bitcoin was too volatile to be used as a medium of exchange.

“It’s really a kind of artificial substitute for gold. And since I never buy gold, I never buy bitcoin,” Munger said. “Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it was the pursuit of the inedible through the inexpressible,” he added.

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