In a recent interview with the Wall Street Journal, Charlie Munger, vice chairman of Berkshire Hathaway and longtime business partner of Warren Buffett, offered a critical assessment of Bitcoin and other cryptocurrencies.
The 99-year-old investor, whose estimated net worth is close to $3 billion, is unreserved in his criticism of the digital asset class, which he sees as a financially inefficient and unstable innovation.
Munger’s sharp criticism
Munger compared the launch of Bitcoin to adding a “stink ball” to an already-perfected traditional finance formula.
He emphasised the role that a strong currency had in the evolution of society from prehistoric to highly developed, noting that the stability of money has always been crucial, whether it be in the form of gold coins or seashells.
Through his use of colourful language, Munger expresses his conviction that Bitcoin, being a “artificial” money, upsets a financial system that has long functioned well.
Munger has made similar criticisms in the past, but they are noticeably stronger now. Previously, he has demanded that Bitcoin and other digital assets be completely banned, comparing them to “gambling contracts” as opposed to sound financial instruments.
Munger’s investment advice
Munger said in the recent interview that investing in index funds could be the best option for the typical investor.
The investing legend points out that there’s no incentive to choose individual stocks unless there’s a clear benefit, same as one would not build their own home appliances without experience.
