Charlie Munger – the vice president of Berkshire Hathaway, the real estate company headed by Warren Buffett – is a billionaire investor. He knows a lot about money and how to make it. At the same time, he is also 98 years of age, which doesn’t necessarily put him at the top of the “bitcoin geniuses” list.
Charlie Munger Hates Bitcoin
To be fair to Munger, he’s an incredibly accomplished person. He has assisted in the building of a billion-dollar real estate company that still sits amongst the top-ranking companies in the United States. He knows a lot; he couldn’t have reached his present position in life if he didn’t, but it’s likely his experience with bitcoin remains limited, and unfortunately, this hasn’t stopped him from talking about it.
Most of the comments Munger has thrown at bitcoin in the past were negative, and his latest string of words towards the world’s number one digital currency by market cap were no different. In a recent interview, he compared bitcoin to a “venereal disease” that won’t go away, stating:
I certainly didn’t invest in crypto. I’m proud of the fact I’ve avoided it. It’s like a venereal disease or something. I just regard it as beneath contempt.
In addition, Munger has stated that he really admires China for banning it. A country that put an entire industry out of work, that forced hundreds if not thousands of people to have to shutter their projects and move to distant lands and that left several investors in the dust… Munger is proud of that country.
What’s even more interesting about his statements is that his company Berkshire recently plunked more than $1 billion into a bank that’s known for its crypto-friendly attitude. Based in Brazil, the institution – known as Nubank – is a digital finance platform that allows its customers to invest in a bitcoin-based exchange-traded fund.
Berkshire first invested in the company in June of 2021, placing more than half a billion dollars into it. The company had only been around for eight years, but already boasted a valuation of nearly $40 billion. From there, Berkshire continued to expand its investments in the firm and eventually placed roughly $1 billion into the bank.
What’s ironic is that Munger’s own company appears to be catching wind of the fact that crypto is growing like crazy. His own firm appears to be investing in the space and working to expand it, yet his attitude towards crypto remains the same. Munger has been speaking ill of bitcoin for years, and even with a $1 billion investment backing a crypto firm, it doesn’t look like his attitude is changing.
Acknowledging the Risk
Despite opening its doors to crypto, Nubank acknowledges that the space is risky, explaining:
Cryptocurrencies and blockchain could limit our ability to track the movement of funds, and therefore present a risk to our company.
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