The world of finance mourns the loss of Charlie Munger Tuesday, the renowned investor and business partner of Warren Buffett who died at 99.
Known for his significant contributions to the investment world and his work alongside Buffett at Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), Munger was also a vocal critic of Bitcoin BTC/USD and cryptocurrencies.
'New Financial Product Out Of Thin Air': Munger’s disdain for Bitcoin was well-documented.
He once referred to Bitcoin as "disgusting and contrary to the interests of civilization."
He criticized Bitcoin for its extreme volatility and lack of regulation.
He also expressed concern about the use of Bitcoin by kidnappers and extortionists.
Munger dismissed the idea that Bitcoin could become a medium of exchange for the world due to its volatility.
He even called for the United States to ban cryptocurrencies, citing their predatory nature and lack of regulation.
In a 2021 interview, Munger said: "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".
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He further added, "I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization."
Despite his criticism, Munger acknowledged the success of Bitcoin, albeit reluctantly.
“Of course I hate the Bitcoin success,” he said during a Q&A session at Berkshire’s annual shareholder meeting in 2021.
Munger maintained his stance that Bitcoin was an “artificial substitute for gold” and likened it to the pursuit of the uneatable by the unspeakable.
The Takeaway: Munger’s death marks the end of an era in the world of finance.
His views on Bitcoin and cryptocurrencies sparked numerous debates and discussions in the financial community.
As the world of cryptocurrencies continues to evolve, Munger’s criticisms serve as a reminder of the challenges and controversies that surround this new form of digital asset.
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