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Disgusting, stupid, evil, rat poison - Charlie Munger, one of the most influential investors of our time, sure didn't hold back when asked about cryptocurrency in a recent interview. Since their inception, Munger has been one of the most vocal opposers of the crypto craze. And the current FTX crisis makes Munger's warning about a currency for kidnappers and tax evaders, as he so aptly puts it, seem like a prophecy.
He was always of the opinion that crypto should be banned and supported the Chinese government for doing so.
In another interview, Munger called out the US government and asked, "why would a civilised government want an untraceable technology into the payment system run by people who want to get rich quickly by doing very little for civilisation?"
Citing the mess that an entity like crypto can cause if left unchecked, Munger added, "You let a bad genie out of the bottle. God knows what happens. I think it's a huge mistake to allow it at all, and the truth of the matter is that our regulatory establishment, when they quit the government, they go out in this heavy promotional capitalism, and so it's very hard for the government to make wise decisions about something like bitcoin.
If I were the benign dictator of the world, I would make it infeasible to make short-term gains in securities. Because we now mix up a legitimate activity - capital raising for enterprises that need money to do their capitalistic function with a gambling casino where people come and gamble."
Munger has also previously warned retail and institutional investors "not to try to be on every deal that's hot." Munger believes this toxic mix of gambling and capital-raising exercises will lead to speculative attitude and is dangerous for the world order. It isn't good to have a lot of people trying to get easy money just from gambling.
While there have been many naysayers to Munger's vehement opposition to crypto, some going as far as calling it doomsday mongering, the recent crypto crisis is a testament to the far-thinking wisdom of the Vice Chairman of Berkshire Hathaway. We haven't ever shied away from showing our contempt for crypto, and it is safe to say we can count Munger as an ally.
Munger's investing philosophy has never been about making a quick buck, a stark contrast to what the crypto influencers promote. His philosophy might rob you of the thrills of the candle charts, but he is a veteran of the long-term wealth-building game. There's a reason why Warren Buffett and Charlie Munger are investing legends who are valued at billions. They are intelligent investors.
Suggested read:
The crypto bloodbath
FTX crash and burn
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