Munger said that his only advise to people will be “Never touch it. Never buy it. Let it pass by”.
Charlie Munger, a veteran investor and vice chairman at Berkshire Hathaway, has once again came out lashing at cryptocurrencies in some strongest words. Munger’s criticism for cryptocurrencies came during his recent interview with Australian Financial Review on Tuesday, July 12.
In his comments, Munger said: “I think anybody that sells this stuff is either delusional or evil. I won’t touch the crypto”. He further added that he’s not interested in undermining the national currencies of the world. It means that Munger would anyway prefer fiat over crypto.
Furthermore, the interviewer asked Munger what advice would he give to investors willing to invest in digital assets. The billionaire investor replied: ““Total avoidance is the correct policy. Never touch it. Never buy it. Let it pass by”.
Just like his partner Buffett, Munger believes in buying stocks of cash-generating companies instead of crypto. “Stocks have a real interest in real businesses,” he stressed.
Speaking about crypto, he further added: “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 that’s difficult to make more of’. I don’t want to buy a piece of nothing, even if somebody tells me they can’t make more of it … I regard it as almost insane to buy this stuff or to trade in it. I just avoid it as if it were an open sewer, full of malicious organisms. I just totally avoid and recommended everybody else follow my example”.
In the past, Munger has also referred to Bitcoin as “rat poison” and a “general disease”. “I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else — and bitcoin does all three.” He added, “It’s stupid because it’s still likely to go to zero,” he said.
Charlie Munger and his friend Warren Buffett have been the harshest critics of Bitcoin. Both of them have made billions of dollars over the last few years following a value-investing approach. However, they don’t find anything meaningful in Bitcoin and crypto.
The recent correction in the crypto market has spread major pessimism all across. This is especially true for investors who joined during the crypto bull run of 2020-21 and haven’t been through the past bear market cycles. In the latest update, Bitcoin has slipped all the way closer to $19,000 today as the U.S. CPI inflation for June 2022 comes at 9.1%, a four-decade high.