Charlie Munger on Cryptocurrency

Charlie Munger held an intensely negative position on cryptocurrency, frequently describing Bitcoin and other digital tokens as worthless and deplorable. He often expressed a wish that the assets be entirely banned from existence. His reasoning centered on the belief that, unlike productive assets such as farmland or businesses, cryptocurrency does not generate any inherent value or utility. He dismissed it as a "store of delusion" rather than a store of wealth, noting its utility for illicit actors like drug dealers and kidnappers who seek anonymous transactions bypassing conventional financial oversight.

The late investor’s strong condemnation was rooted in his philosophy of avoiding things he considered stupid or evil, finding that crypto fit both descriptions. He viewed its promotion as a "scumball activity" and considered its emergence a negative reflection on the technological progress of the United States, especially when compared to nations that banned it. Despite acknowledging an underlying technological interest in blockchain, his consistent focus was on the asset class itself, which he repeatedly called "rat poison" and a "crazy stupid gambling" endeavor.