Charlie Munger, vice chairman of Berkshire Hathaway, railed against bitcoin at the company’s annual meeting on Saturday, calling the blockchain which Munger and his longtime associate Warren Buffett have condemned for years calling it disgusting and against civilization’s interests.
Key Facts:
- During a live question-and-answer session on Saturday, an investor pressed Buffett and Munger on their well-documented reservations about cryptocurrencies, especially bitcoin, the price of which has more than doubled in the last year.
- Buffett sidestepped the issue, joking that if he criticizes bitcoin, he would enrage its owners.
- Munger was less diplomatic: He expressed contempt for bitcoin’s recent gains, claiming the currency is used by criminals as a means of payment.
Munger said that he opposes a currency that is a means of convenience for extortionists and kidnappers. He further stated that the development of cryptocurrency is itself contrary and disgusting to civilization’s interests.
I won’t make thousands of people angry
Warren Buffet said that he will skip this question considering the fact that there will be people in thousands who own bitcoin watching this and we are just two. He stated that he has an option of making thousands of people angry and two people happy, which is a dumb equation.
Background
Skepticism for Bitcoin is not a fresh stance for Berkshire Hathaway’s two chiefs. Buffett has referred to bitcoin as a rat poison and delusion and he pledged last year not to buy bitcoins, claiming they have no value. Munger, on his part, has referred to bitcoin as “artificial gold” and argued that its scarcity renders it worthless as a medium of trade, thus comparing cryptocurrency investment to “trading turds.”
It can never act as a common currency
Buffett and his deputy have long spoken up expressing their dislike of Bitcoin, but they are not the first people to do so. Bitcoin enthusiasts also argued that the blockchain is becoming popular as a method of payment by ordinary customers is simply due to its inherent worth. Nevertheless, critics warn that its high valuations are caused by rapid inflation and volatility, and say it would never act as a common currency.
