It should be noted that there is a lot to criticize Bitcoin and the cryptocurrency market in general right now. In particular, BTC collapsed to its local low of $42K this morning. Meanwhile, yesterday afternoon the cryptocurrency was valued at 57.6 thousand. We can also mention Bitcoin’s all-time high of $69,000, which was set very recently – in the first half of November.

Bitcoin 15-minute chart

Other cryptocurrencies have also been badly affected by the events. Most coins slumped by tens of percent overnight.

Top cryptocurrencies by market capitalisation

What cryptocurrencies are criticised for

Munger, who is a close friend and business partner of Warren Buffett – while Buffett himself has also previously criticised crypto on numerous occasions – has voiced his support for the Chinese government’s decision to completely ban digital asset activities in its territory. Here’s one of his quotes, published by news outlet Cointelegraph

Believe me, people who create cryptocurrencies don’t think about the customer, they think about themselves. I, on the other hand, want to make money by selling people things that are good for them, not things that are bad for them.

So Munger has made it clear that stocks of various companies are supposedly more useful than cryptocurrencies - in addition, they are not as damaging to investors' financial situation. We disagree with this statement. First, cryptocurrencies are growing faster than any stocks or other traditional investment vehicle - and there's no arguing with that. Second, decentralised crypto allows investors to fully own the asset and not have to worry about it being frozen, taken away, or anything like that. In addition, digital assets open up access to decentralised finance to all comers.

Investor Charlie Munger

Munger closed his remarks with another attack on Bitcoin. Here’s his line.

I will never buy cryptocurrencies. I wish they had never been invented.

Which means the investor is clearly very unhappy with what's going on in the cryptocurrency niche. That said, it's hard to believe that he actually understands blockchain and other basic concepts of the coin world.

There has been a largely negative reaction to Munger’s words on Twitter. Here’s what a crypto-enthusiast under the nickname The Crypto Head wrote about it, for example.

Imagine, he’s 97 years old. In his lifetime, a Ford Model T was released. I guess you have to wait years for a profit on the stock. Leave the poor old man alone, he’s just shocked that crypto is up 1,300 percent in a week.

That Ford Model T.

Synthetix founder Kane Warwick also pointed out that despite Munger’s willingness to make money selling only “good” things, Berkshire Hathaway is the largest shareholder in Coca-Cola, which is supposed to be a “significant contributor to many diseases”. Accordingly, criticising digital assets for their not-so-understood “harm” is not so fair.

One of the creators of The Crypto Corner, a podcast series about cryptocurrencies and blockchain, Jamil Hassan noted that the industry doesn’t care if Munger invests in digital assets.

I will survive if Charlie Munger doesn’t buy cryptocurrencies. I’m sure Charlie buys things I don’t need.

Some commentators also pointed out that China has tried to ban Bitcoin several times in the last eight years, but that hasn’t stopped the cryptocurrency from rising more than 5,000 percent during its last two bullish cycles. Which means there’s no point in rejoicing and approving a coin ban: if anything, cryptocurrency owners will be able to use them outside of exchanges with wallets, even while in China.

The power of Bitcoin


We don't think it's worth paying attention to Charlie Munger's criticism of the cryptocurrency industry, at least because of his age. After all, Charlie is 97 years old, so it would be rather risky to expect him to understand and endorse the decentralised finance industry. Still, even many in the crypto community today don't understand all the details of what's going on in the niche, and Munger is an avid fan of traditional investment vehicles, on which he made his fortune. So there's nothing for crypto enthusiasts to get upset about.


What do you think about it? Share your opinion in our Millionaire Crypto Chat. There we will talk about other topics related to blockchain and decentralization.