Bitcoin is a ‘Noxious Poison’ Says Berkshire Chief, Charles Munger
In an interactive session at the shareholders meeting of The Daily Journal on February 14, 2018, Charles Munger expressed some strong opinions about bitcoin. Fielding questions at the interactive session, Munger called bitcoin a “noxious poison.” He admitted that the technology behind bitcoin (blockchain technology) might have some merits, but he condemned the frenzy that surrounds the bitcoin investment market as “totally asinine.”
The United States Should Mimic China
The investment advisor didn’t hold back when commenting on bitcoin saying that the occasional global silliness on account of the allure of easy money comes as no surprise and that he finds it disgusting that people are taken in by the crypto hype.
He praised China’s decision to embark on a strict crackdown on cryptocurrency and lambasted the US government for not doing the same. Munger described the US government’s relaxed attitude towards cryptocurrency as being “wrong” and that the government ought to “step on it hard.”
During the session, Charles Munger also commented on the situation with Wells Fargo, the most significant Berkshire stock holding. Wells Fargo has been under the spotlight for the better part of 18 months due to a scandal involving a swath of fake accounts.
The bank admitted to selling financial products like vehicle insurance to customers who didn’t require them as well as charging exorbitant mortgage fees. Speaking about the issue, Munger believes that the time is right for government regulators to cut the bank some slack.
Charles Munger, 93, is the billionaire vice-chairman of investment giant Berkshire Hathaway, an investment firm owned by another crypto-naysayer, Warren Buffet. He is also the chairman as well as director at the LA-based publishing company, The Daily Journal.
The interactive session on Valentine’s Day was an opportunity for participants to get Munger’s take on some subjects. He fielded questions from participants during the 2-hour long interactive session.
Negative Critics Are Old News
These comments by Charles Munger are the just the latest in a slew of negative sentiments towards the cryptocurrency market from major players in mainstream finance.
Warren Buffett is also another staunch critic of bitcoin and cryptocurrency in general. He has on several occasions referred to bitcoin as “a bubble,” “a mirage” and that the system “will come to a bad end.” Buffet has severally espoused the opinion that bitcoin and cryptocurrencies, in general, cannot be valued because they aren’t value-producing assets, according to him.
Alongside such derision, many countries are beginning to take steps towards regulating bitcoin and the cryptocurrency market. From blanket bans to restrictions on anonymous trading, legislators are putting the cryptocurrency market under stricter scrutiny than in times past.
In 2017, the market experienced a stellar year with a few cryptocurrencies growing by percentages in the thousands. In the wake of the unprecedented growth, there have been a lot of issues raised with the sustainability of the market. Fears of the market being a bubble still rank high with many investors, monitors, analysts, and critics alike.