American billionaire investor Charlie Munger has come under the spotlight again after a scathing attack on Bitcoin and other cryptocurrencies.
Speaking during an interview with The Australian Financial Review(AFR) published Tuesday, Munger lambasted crypto assets suggesting that investing in them was tantamount to just throwing one’s money away. “Crypto is an investment in nothing, and the guy who’s trying to sell you an investment in nothing says ‘I have a special kind of nothing difficult to make more of,’” said Munger. “I don’t want to buy a piece of nothing, even if somebody tells me they can’t make more of it.”
The former attorney went on to say that he regarded it as almost insane to buy crypto or trade in it before taking a jab at those who dealt in Bitcoin and other crypto assets “I think anybody that sells this stuff is either delusional or evil. I won’t touch the crypto,” he went on.
To back his tough stance on cryptocurrencies, he stated that they were a threat to economies since they undermined the national currencies of the world. Asked to advise those who were looking into adding crypto assets to their portfolio, Munger replied, “total avoidance is the correct policy…Never touch it. Never buy it. Let it pass by.”
Munger, 98 is currently the vice chairman of Buffett-helmed American multinational conglomerate holding company Berkshire Hathaway Inc. Just like his friend Warren Buffett, Munger has never been a fan of Bitcoin and sees the crypto sector as just a fad. Instead, the two billionaires prefer investing in tangible assets such as land or investing in company stocks which they have said ‘generate real value.’
Munger’s latest remarks come on the heels of the sharp pullback that has seen the global market capitalization of crypto assets drop below $1 trillion from $3 trillion in November leaving investors scratching their heads. In May, Munger bashed cryptocurrencies stating that he tried to avoid things that are stupid or evil and made him look bad in comparison to other people-and bitcoin did all three. At the time, the businessman praised China for cracking down on cryptocurrencies asking the US to take the same route for the sake of its economy.
In February, he likened cryptocurrencies to a “venereal disease” calling Bitcoin “rat poison” and saying that he was happy that he had not invested in crypto. During the 2018 bear market, Munger had also attacked cryptocurrencies referring to those who were pushing for the sector as a disgrace.