In a recent interview, Berkshire Hathaway Vice Chairman Charlie Munger slammed cryptocurrencies as “worthless” and “dangerous,” urging investors to avoid them entirely. He compared the crypto industry to a “dirty cesspool,” saying it is full of scams and fraud. He advised people to steer clear of cryptocurrencies, warning that they could lose all their money if they invest in them.
Munger’s comments echo those of his boss, Warren Buffett, who has also warned people about investing in cryptocurrency. The two are highly respected investors, so their opinion on crypto carries a lot of weight. In addition, Berkshire Hathaway is one of the most successful companies in the world. The firm is currently valued at over $600 billion, making it the 7th largest corporation worldwide.
Total avoidance of cryptos
When Munger was then asked what advice he would give to other investors who may be considering investing in cryptocurrency, he said total avoidance is the correct policy.
Cryptocurrencies are notoriously volatile, so his advice may be wise. Investing in crypto is risky, and people could easily lose all their money if they’re not careful. So he advised people thinking about investing in cryptocurrency to make sure they do their research and understand the risks involved before putting any money down.
Munger noted that people should never touch, never buy crypto. Let it pass by. He noted that it is not an investment but gambling, and you will almost certainly lose money if you gamble on crypto. At one point in May this year, Buffet also said that he wouldn’t pay even $25 for all Bitcoin in the world because he would later have to sell it back “one way or another.”
According to Munger, cryptocurrencies are not the way forward, and the notion that they are superior technologies is nonsense. He has stated that while it is clever computer science, it should not be utilized. He added that he does not believe Bitcoin is a good means of transporting money based on everything we know now.
Munger and Buffett advocate that equities in real cash-generating firms are superior investments. They advised investors to concentrate on businesses with a competitive advantage that are repurchasing their own shares. Munger said it’s the best method to get a return on investment. Munger made it clear that he did not want to invest in nothingness.
Worthless artificial gold
Munger has never liked bitcoin or any other cryptocurrencies. In February 2018, he said that buying bitcoin was just like “going to Vegas,” and that people who do so are “playing with their money.”
In May 2020, Munger reiterated his negative view of cryptocurrency, calling it “worthless artificial gold”. A few months ago, he said the government should ban BTC, calling it a “venereal disease.” He wished that it was never invented since it is pointless.
Munger’s latest comments reaffirm his bearish stance on crypto. He doesn’t believe it has any intrinsic value and thinks it’s a dangerous investment that could easily lead to people losing all their money. Overall, Munger’s comments on crypto are not surprising. He’s been bearish on the asset class for a while, and his latest remarks reaffirm his negative view.
Investors are advised to understand the risks involved in investing in cryptocurrency and should avoid it entirely if they’re not comfortable with the volatility. Munger’s advice is to steer clear of crypto and instead focus on investments in real companies with a competitive advantage.
Source: https://www.cryptopolitan.com/charlie-munger-buying-crypto-is-worthless/