Billionaire investor Charlie Munger has called out the current crypto-based markets, comparing it with the unpredictability of the dot-com bubble burst of the 90s.
Crazier Than Dot-Com Burst: Munger
Prominent Wall Street investor Charlie Munger is also Warren Buffet’s right-hand man in the latter’s conglomerate, Berkshire Hathaway. On Friday, Mr. Munger spoke at the Sohn Hearts and Minds conference, highlighting his distaste towards cryptocurrencies in general and the goldrush it had created in the market. The 97-year old investor even stated that the investment environment created by cryptocurrencies had reached levels of extremity unseen before, even in his long career. He cited the dot-com boom of the 90s, stating,
“I think the dot com boom was crazier in terms of valuations than even what we have now. But overall, I consider this era even crazier than the dot-com era.”
He also went on to add that he would never participate in this market and wishes that cryptocurrencies were never invented.
Munger Supports China Ban
Munger is currently the Vice Chairman at Berkshire Hathaway, which has multiple major investments in China, including car manufacturer BYD. In discussion with Dr. Mark Nelson of the hedge fund Caledonia, Mr. Munger also applauded China’s move on imposing a complete ban on cryptocurrencies and all related activities.
“I think the Chinese made the correct decision, which is to simply ban them. My country – English-speaking civilization – has made the wrong decision…I think they were right to cut back on some of the exuberances that come with capitalism.”
He explains his skepticism towards this industry, stating that he wants to sell products that are good for the customers and that the creators of cryptocurrencies are simply considering their own profits and not thinking about the customer.
Warren Buffet Still Firmly Anti-Crypto
Mr. Munger shares his anti-crypto stance with Berkshire Hathaway CEO and Wall Street legend Warren Buffet . Mr. Buffet has famously stated that he does not currently own any cryptocurrency and has no intention of doing so ever. In fact, Mr. Buffet has often used harsh language to emphasize his distaste for the asset, comparing Bitcoin with ‘rat poison.’
However, in January 2020, the billionaire investor sat down with Tron CEO Justin Sun in a charity lunch that Sun had won. Even though the Tron CEO claimed that Buffett was being swayed to the crypto side, the investor denied holding any cryptocurrency in a later interview with CNBC.