There is no doubt that the right arm of the famous American billionaire Warren Buffett is one of the most opponents of digital currencies, but he stepped up his offensive tone in his latest statements about the feasibility of digital assets, accusing those who are convinced of them of fools.
In the opinion of Berkshire Hathaway Vice President Charlie Munger, cryptocurrencies are just a craze that will end and investors will only reap losses from it.
It’s no surprise that Munger, who has a net worth of $2.3 billion and is best known as Warren Buffett’s right-hand man, is one of Bitcoin’s most prominent opponents, describing it more than once and Buffett as being like a rat.
Monger said at the annual meeting of shareholders that cryptocurrency and cryptocurrencies are worthless, as they are bad assets and not good at all.
Charlie Munger believes that digital currencies do nothing but harm society and the global financial system, warning against excessive adoption.
Charlie Munger, vice president of Berkshire Hathaway, criticized the approval of authorities in Washington to allow cryptocurrency activities in the country, as they are traded on several exchanges.
The old billionaire called for cryptocurrencies to be banned in the United States, said that digital assets are nonsense and added that anyone who opposes his position on such assets is an “idiot”.
Monger said: I thank the Chinese leader for his wonderful example of uncommon sense about the cryptocurrency ban in 2021 and the authorities’ crackdown on mining companies.
The vice president of Berkshire Hathaway added that the US should take a lesson from China when it comes to regulation — that country banned digital currency in 2021.
“Sometimes I call it Crypto Crapo and sometimes I call it CryptoShit, it’s just ridiculous that anyone would buy such worthless stuff,” said Charlie Munger.
He continued, “I am not proud of my country for allowing this nonsense.” In reference to the fact that there are many cryptocurrency platforms in the USA.
Munger’s comment comes as global regulators are increasing their oversight of the crypto industry, following the collapse of several major firms last year such as the FTX platform, causing billions of dollars in losses to investors.
“A digital currency is not a currency, it is not a commodity, and it is not a security,” said Charlie Munger, vice president of Berkshire Hathaway.
“It is 100% contract gambling that only takes place in a country where gambling contracts are regulated and lax in cracking down on such activities,” the veteran billionaire added.
Munger said he’s ashamed that so many people in America believe in this kind of nonsense and the government allows it to exist.
Washington regulators have become more aggressive about cracking down on crypto firms in the wake of cryptocurrency corporate meltdowns.
This week, the New York Department of Financial Services banned cryptocurrency firm Paxos from issuing the Binance stablecoin pegged to the dollar.
At a congressional hearing on Tuesday, Senator Sherrod Brown said: The repercussions of the encryption failure are still continuing.
“The nightmare is not over yet,” Brown said. “The recent cryptocurrency crashes have made it clear that we need a comprehensive framework to regulate crypto products to protect consumers and our financial system.”