Berkshire’s Charlie Munger Criticizes Bitcoin, Equating It with ‘Venomous Ball’ in Currency Sphere

89

Charlie Munger, Warren Buffett’s longstanding associate and Vice Chairman at Berkshire Hathaway, has expressed alarm over the surging price of bitcoin. The nonagenarian likened the digital currency to a “venomous ball” amid the sphere of established currencies. “Introducing an artificial currency is like tossing a venomous ball into a well-established culinary mix, which has served many people effectively over a long period,” Munger remarked.

Munger’s Unfavorable Comparison of Bitcoin to Traditional Currencies

In a recent interview with the Wall Street Journal, Berkshire Hathaway’s Vice Chairman Charlie Munger once again expressed his critical views on bitcoin. Munger, at 99, addressed his concerns about bitcoin’s price volatility when questioned.

“It certainly raises my concern,” he stated. “I hold a number of fundamental views that I believe are essential for every well-informed individual. These include the principles taught by Adam Smith… For Smithian economics to function, you require a reliable medium of exchange. The approach we’ve employed to establish widespread trust in currency is through sovereign issuance.”

Munger went on to explain: “The only path from primitive societies to advanced civilizations that has proven effective involves the use of strong currency. It can take various forms — from seashells to corn kernels, and from gold coins to banking promises, such as those used in the United States and the United Kingdom.” He underscored his point by stating:

By introducing an artificial currency, you are interjecting a venomous ball into a longstanding and successful system that has benefited many.

Munger has consistently voiced skepticism towards cryptocurrencies, with bitcoin often being his primary target. In the previous month, he cautioned that the majority of crypto investments might plummet to zero, denouncing bitcoin as the “most foolish investment” he had ever encountered.

Previously, Munger has described bitcoin as “rat poison” and equated its trading to that of “worthless objects.” In February, he asserted, “It’s utterly ludicrous that people invest in such things… It’s a monstrous nightmare, and I feel disgraced for my country for the sheer number of people that fall for this nonsense, and for the government’s failure to regulate it.”

In the past July, he resolved to steer clear of cryptocurrencies, suggesting others do the same and treat it as though it were “a pest-ridden sewer.” He has also compared digital currencies to “a sexually transmitted disease” and called for their prohibition. Furthermore, he lamented the very creation of cryptocurrencies, condemning them as “abhorrent and detrimental to the welfare of civilization.”

What are your thoughts on Charlie Munger’s analogy of bitcoin to a venomous ball when contrasted with traditional currencies? Share your views in the comments section.

Frequently Asked Questions (FAQs) about Charlie Munger Bitcoin Criticism

More about Charlie Munger Bitcoin Criticism

• Charlie Munger’s Bitcoin Criticism