Charlie Munger on Crypto

Charlie Munger held an unequivocally negative position on cryptocurrency throughout his career, often expressing disgust and contempt for digital assets like Bitcoin. He famously categorized crypto as "rat poison" and later as "more expensive rat poison" when its price rose, viewing it as inherently speculative and lacking intrinsic value. The business leader frequently asserted that cryptocurrencies are designed for illicit activities, stating in a 2022 appearance that the system is currency for "kidnappers" and that he does not need a currency for criminals. His stance was consistent in characterizing the entire market as a combination of fraud and delusion, and he expressed pride in having avoided investing in it altogether.

He believed that the promotion and existence of crypto were detrimental to society, viewing the lack of governmental prohibition as a failure of his country, according to statements made at the 2023 Daily Journal annual meeting. Munger often framed his opposition through the lens of a value investor, suggesting that non-productive assets like crypto fail a basic test of worth. He believed that allowing such assets was antisocial, and he went so far as to suggest that authorities should follow the lead of other nations and ban cryptocurrencies transactions entirely.