Charlie Munger detonates cryptocurrency during a Q&A session at the Daily Journal’s annual meeting. The billionaire who is often referred to as Warren Buffett’s right hand referred to crypto as a sexual dysfunction.
Asked if he missed anything in the $2 trillion digital currency market, Munger said he “definitely didn’t invest in crypto. I’m proud of what I’ve avoided.”
The billionaire said that people rely on the currency used for “extortion, kidnapping and tax evasion”. The 98-year-old wants cryptocurrencies to be “banned immediately”.
He also commended the Communist Chinese government for refusing it; “I think they were right and it’s wrong to allow us” [crypto],
On January 20, the US Federal Reserve (Fed) published a report regarding a central bank digital currency pegged to the US dollar, also known as a CBDC. The report outlines the pros and cons of having a CBDC for the national economy. Munger, however, says that “we already have a digital currency, it’s called a bank account.”
“Banks are integrated with all [the] Federal Reserve System,” he said.
According to Munger, a government does not want “an ideal untraceable technology to come into the payment system.” He says that cryptocurrencies are created by people who want to get rich quickly and, of course, he “hates”[s] This.”
Last May, Warren Buffett verbally attacked special purpose acquisition companies and a stock and crypto trading app called Robinhood, saying they “encourage gambling.” Robinhood’s co-founder, Vlad Tenev, came back to him saying, “People are tired of the Warren Buffetts and Charlie Mungers of the world acting like they’re the only oracles of investing.”
In response, Munger said, “It’s not good that a lot of people are definitely trying to get easy money from gambling.”
Munger said that he and his friend Buffett “understand this and we know it’s not good for our republic and there’s not much we can do about it so we spend our time on matters about which We can do something.”