Billionaire Investor Despises Bitcoin, Here’s Why
Warren Buffet’s right-hand man, Charlie Munger, strongly opposes the crypto movement. Munger is a billionaire in his own respects, however he does not view cryptocurrency as a viable solution to the exact problems it aims to solve. Recently the topic of cryptocurrency came up and Munger was quick to share his thoughts on why nobody should invest in this “digital version of gold”.
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Crypto Markets Are Manipulated Very Easily
One of the main concerns brought to light by Charlie Munger was the fact that crypto markets can be manipulated very easily. This is the exact reason why he thinks Bitcoin will fail to become the ‘currency of the world’. It is simply too volatile, and people will be reluctant to accept it as a form of payment. This is a valid concern, considering the fact that a single Twitter post from Elon Musk can cause the entire crypto market to plummet. But Munger didn’t stop there, he also alluded the concern of how Bitcoin appeals to devious individuals. This is not the first time we have heard people discuss concerns over the intentions of Bitcoin. Many people still feel that Bitcoin was originally developed in order to provide criminals with a safer medium of exchange.
Bitcoin Opens the Door to Crime
Since cryptocurrencies such as Bitcoin thrive on the principle of decentralization. This opens the door to individuals who want to remain ‘under the radar’. Allowing criminals to launder money, or even commit acts of fraud. Naturally, this gives criminals an upper hand, making it harder for law enforcement to track them down, as well as providing criminals with a lucrative method of exchange. If you’re planning to invest in Bitcoin, this could be a major factor to consider. If Bitcoin does truly gain a reputation of being associated with crime, it could result in more restrictions for investors. Possibly causing entire countries to place an all out ban of crypto in the future.
‘Cryptocurrencies Should Be Banned’
Charlie Munger didn’t stop there, in fact he went on to discuss how he supports China’s decision to ban cryptocurrencies altogether. China made this decision over concerns of fraud and money laundering. We begin to see the same issues arise over and over again. Which means maybe we should take these issues into account, before we buy the next Bitcoin dip.
Charlie Munger is a veteran stock investor, but this is clearly not the case with cryptocurrency. Munger’s opinion of crypto is almost the exact opposite of what you would expect from an innovative mind. With individuals such as Elon Musk and Jack Dorsey both showing strong support for the crypto movement. Perhaps Charlie Munger is out of touch, or maybe his investing experience will provide better insight as to what the future has in store for crypto.
One More Thing
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