Bitcoin will not Replace Traditional Banking System, Says Charlie Munger

While the young generation and the new blood in corporate America are showing a warm enthusiasm towards Bitcoin, some are not very happy with its success. Charlie Munger, the vice-chairperson of Berkshire Hathaway Conglomerate and highly accomplished architect, seems to have a bone to pick with cryptocurrency enthusiasts. 

At the annual shareholders meeting for Berkshire Hathaway, Munger made some abrasive remarks about digital assets and particularly targeted Bitcoin. He believes that Bitcoin has been created out of thin air and does not deserve to hold any value. The meeting was streaming live when the 97 years old billionaire remarked that he is against Bitcoin prevalence in the market because it opens up a free gateway for criminals and lawbreakers.

Warren Buffet does not want to Comment on Cryptocurrencies

Munger is a longtime work colleague of Warren Buffet, and he is not the only senior crypto cynic. When the Oracle of Omaha was asked about his opinion on crypto markets, he refused to make a statement. However, when Munger remarked that Bitcoin is disgusting and goes against the interests of civil society, Buffet endorsed his remarks. It should be noted that Warren Buffet has been known to have huge stakes in BNY Mellon, Goldman Sachs, JP Morgan, M&T Bank, and Wells Fargo, etc.

Although Buffet claimed that he did not want to rain on the parade of crypto investors who are optimistic about their long positions in the market, although his colleague was less than shy in expressing his opinions. He also criticizes the high volatility and lack of regulations for crypto markets.

Munger also said that he is not sure about how the new technology would evolve conventional banking. Nevertheless, he is sure that Bitcoin would not be able to replace the current banking and centralized financial system. He was speaking at Daily Journal’s annual shareholder’s meeting a few weeks ago. Munger has not been a fan of other digital payment platforms like Apple Pay and Square.

He has also criticized Tesla Inc.’s $1 trillion evaluation since its interest in Bitcoin. Responding to a question about 743% appreciation of Tesla Stock last year, Munger retorted that he is unable to decide which success story is worse, Tesla or Bitcoin. It should be noted many noteworthy banks like Morgan Stanley, JP Morgan Chase, Goldman Sachs, and many others are already offering their clients cryptocurrency exposure. Meanwhile, Munger thinks that applications like Robinhood are entrapping unsuspecting investors into crypto markets. 

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