Charlie Munger criticizes crypto as a worthless, dangerous, dirty sewer

Charlie Munger unleashed a new wave of burning criticism of cryptocurrencies in a recent interview. He dismissed the digital coins as worthless, urged people to avoid them altogether, and compared the crypto industry to a dirty sewer.

“Crypto is an investment in nothing,” Munger told the Australian Financial Review. “I see it as almost insane to buy these things or trade in them.”

The 98-year-old investor and deputy director of Berkshire Hathaway argued that just because something is scarce or difficult to make more out of, there is no compelling reason to own it. He added that shares, which represent parts of real companies and claims for profit, are a far superior investment.

Munger also targeted coin makers and exchanges, and vowed to buy crypto because it undermines the existing monetary system.

“I think everyone who sells these things is either delusional or evil,” he said. “I am not interested in undermining the national currencies of the world.”

Warren Buffett’s business partner, who has previously described crypto as a venereal disease and a tool for criminals, issued another condemnatory indictment during the AFR interview.

“I just avoid it as if it were an open sewer, full of malicious organisms,” he said. “I avoid and recommend everyone else to follow my example.”

Bitcoin, ether and other popular coins have plunged more than 70% from the top in November, triggering a wave of layoffs, record withdrawals and bankruptcies in the crypto industry.

Rising prices, stock movements and fossil fuels

Munger weighed in on several other market themes. He stated that he largely ignores macroeconomic trends, pays little attention to what commentators say, and instead focuses on investing his and Berkshire’s capital as best he can.

“All these people chatting on TV do not think like I do,” he said.

The billionaire investor also described inflation as a recurring problem that he has struggled with many times before, but suggested that it would ultimately make all the world’s currencies worthless. “That’s my basic cynical view,” he said.

In addition, Munger shrugged off the recent decline in equities, which is not unusual, but noted that rising interest rates are likely to significantly affect stock prices and valuations.

Finally, Buffett’s right hand predicted that the world would continue to use fossil fuels for a long time, noting that natural gas is needed to make nitrogen fertilizer used to grow crops. Nevertheless, he also suggested that clean energy sources would play a greater role in global power generation. “Both things are going to happen,” he said.

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