Charlie Munger, Warren Buffett’s partner, delivers a scathing critique of Bitcoin, likening it to a “stink ball” disrupting traditional finance. He emphasizes the importance of strong currency for civilization and recommends index funds for average investors.
In a recent interview with the Wall Street Journal, Charlie Munger, vice chairman of Berkshire Hathaway and long-time partner of Warren Buffett, didn’t hold back in his criticism of Bitcoin and other cryptocurrencies. The 99-year-old investor, whose net worth nears $3 billion, described the digital asset class as destabilizing and unproductive, comparing it to tossing a “stink ball” into the well-refined recipe of traditional finance.
Munger’s View on Currency
Munger emphasized the significance of a robust currency throughout the transition from primitive societies to advanced civilizations. Whether it’s seashells or gold coins, the stability of the currency has always been paramount. He argues that Bitcoin, as an “artificial” currency, disrupts a financial system that has effectively served its purpose for centuries.
Munger’s Investment Advice
Charlie Munger’s critique of Bitcoin is not a new development. He has previously called for an outright ban on Bitcoin and similar digital assets, likening them to “gambling contracts” rather than legitimate investments. In the interview, Munger advised average investors to consider putting their money into index funds, drawing parallels between designing household appliances without expertise and picking individual stocks without a distinct advantage.