Investing In Crypto Is 'Crazy, Stupid Gambling,' Says Billionaire Charlie Munger

Charlie Munger, a multibillionaire investor, is not a fan of cryptocurrencies.

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At the Daily Journal Corporation's annual shareholder meeting on Wednesday, the vice chairman of Berkshire Hathaway referred to the virtual currency as "worthless." He is a director of a publishing firm.

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During a livestream of the event, Munger, 99, said, "I sometimes call it crypto 'crappo,' sometimes I call it 'crypto s—-,'" adding, "It's really ludicrous that somebody would buy this stuff. It's totally utterly foolish, idiotic gambling."

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The proponents of cryptocurrency contend that compared to conventional financial institutions, digital assets provide greater privacy, security, faster transaction times, and lower costs.

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Munger, a seasoned stock investor with a $2.3 billion net worth, disagrees. He declared, "I don't think there is a sensible argument against my stance because I think the individuals who oppose my perspective are stupid.

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Munger's remarks come amid a deluge of issues that cryptocurrency investors have faced over the past year.

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Around $2 trillion was lost in the cryptocurrency market in 2017. One of the most well-known cryptocurrencies, bitcoin, saw a loss of value of more than 60% in 2022. Furthermore, the fall of FTX, a now-bankrupt cryptocurrency trading platform formerly valued at $32 billion, has damaged investors' faith as the sector is affected by the company's demise.

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According to James Royal, a key reporter at Bankrate, "many Americans are realizing that bitcoin is just a speculative bubble and the business is replete with scammers." The Trade Algo Survey indicates that as of November, only 8% of Americans had a favorable opinion of cryptocurrencies.

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Munger has already encouraged the U.S. government to prohibit cryptocurrencies, and he may partially get his way as the crypto industry faces escalating regulatory crackdowns on Wednesday, when he stated he's not proud of his country "for allowing this rubbish."

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The U.S. is increasing its examination of cryptocurrency trading companies and financial advisors. The main goals for the Securities and Exchange Commission for the current year are listed in the agency's "2023 Examination Priorities Report."

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According to the source, the SEC will focus its examinations on "offer, sale, recommendation of or advice regarding trading in crypto or crypto-related assets."

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The organization agreed on Wednesday to broaden federal regulations that, if made law, may compel cryptocurrency exchanges to store their assets with a bank that is either federally or state-chartered and serves as a custodian over consumers' virtual money.

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In a statement released on Wednesday, SEC commissioner Mark Uyeda claimed that the idea places crypto companies in a "no-win" situation. Banks have already been cautioned by American regulators that working with cryptocurrencies exposes them to a variety of dangers, including fraud and swindling.

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In other words, an adviser might store cryptocurrency assets at a bank, but institutions are discouraged from doing so by their authorities, according to Uyeda.