Famous investor and long-time business partner of Warren Buffett, Charlie Munger is also a big critic of bitcoin and cryptocurrencies. Asked to comment on the various market investment opportunities at the annual meeting of the Daily Journal Corp, the person concerned said that cryptocurrencies should be banned.

Charlie Munger Says Cryptocurrencies Should Be Banned

A venereal disease to eradicate

While institutional investors and larger corporations are getting more exposure to cryptocurrencies,  Munger still opposes them. He did not hesitate to compare them to a venereal disease that must be eradicated, supporting the decision taken by China to ban them on its territory . “  I wish they were banned immediately, and I admire the Chinese for doing that. I certainly haven't invested in crypto. I'm proud of the fact that I avoided it. It's like a venereal disease or something. I just consider it normal to look down on them  ,” he said.

The 98-year-old billionaire also warned investors attending the Daily Journal Corp general meeting against the influx of venture capital funds into startups . In particular, he described as “  miserable excess  ” the phenomenon that has particularly developed within the cryptosphere. “  Certainly the big crunch in short positions at GameStop was a miserable excess, and so is bitcoin. I would say venture capitalists are throwing too much money too fast, and there is a huge miserable excess in venture capital and other forms of private equity  ,” Munger said.

Indirect exposure to bitcoin via Berkshire Hathaway

Although he is fiercely opposed to bitcoin, like his sidekick Warren Buffett, Charlie Munger indirectly benefits from cryptocurrency . Indeed, the company Berkshire Hathaway Inc, of which he is the vice-president, has just invested a billion dollars in Nubank , a pro-Bitcoin bank very popular with Brazilian investors.

Berkshire, whose CEO is none other than Warren Buffett, had already invested $500 million in the Brazilian bank in July 2021, which generated $150 million after six months . In addition, Nubank acquired the Easynvest trading platform two years ago, which has offered a bitcoin futures ETF since June 2021.

Despite bitcoin's growing adoption and popularity with venture capitalists, Charlie Munger remains unconvinced of the cryptocurrency's potential. He is still indirectly exposed to it, even if he still refuses to invest his funds in it.

Source: Bloomberg

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