Charlie Munger Has No Bitcoin Love
As the vice chairman of the company, Munger states that bitcoin’s success over the last several years makes him nauseous, and that the currency’s background as a go-to token of illicit behavior should have ultimately given it the boot early in the game. Munger commented in a recent Q&A:
Of course, I hate the bitcoin success. I do not welcome a currency that is 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 invested a new financial product out of thin air. I think I should say modestly that the whole damn development is disgusting and contrary to the interest of civilization.
By Munger’s side was Buffett, also a part of the Q&A. He simply responded to Munger’s answer with:
I am alright on that one.
When pressed about his feelings on bitcoin, Buffett stated during the event that he did not wish to talk too much about it as he did not want to cause grief or garner any guff from anyone who is “long” on bitcoin. In other words, this is a highly sensitive subject for many people as they are convinced BTC is the future, and he did not want to bring stress or anxiety to anyone in the audience that felt this way.
But Munger clearly had no objections to stating his true feelings about the matter, and to be fair, Buffett – while remaining reserved on the subject at the time of writing – has been quite clear in the past about where he thinks bitcoin stands in the world of finance. Before this event, Buffett has referred to bitcoin as “rat poison” and has stated it has less use than a “button” on his shirt. He criticizes it given that it can only be sold granted the person buying it is willing to pay a higher price than you did.
Volatility Is an Issue
Aside from the idea that bitcoin is often used for illicit purposes, Munger also criticized the world’s number one digital currency by market cap for its volatility and lagging regulatory presence. He says that to serve as a medium of exchange, BTC would need to be far more stable than it currently is, explaining:
It is really kind of an artificial substitute for gold, and since I never buy any gold, I never buy any bitcoin. Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it was the pursuit of the uneatable by the unspeakable.
At press time, one unit of bitcoin is trading for about $57,000, which is roughly $7,000 less than its previous all-time high of $64,000.