American billionaire Charlie Munger is not a fan of Cryptocurrency.
In fact, he believes the new digital currency is nothing different from gambling.
The Berkshire Hathaway vice chairman called the form of virtual currency “worthless” during Wednesday’s annual shareholder meeting of the Daily Journal Corporation, a publishing company where he’s a director.
“Sometimes I call it crypto ‘crappo,’ sometimes I call it ‘crypto s—.’ It’s just ridiculous that anybody would buy this stuff,” Munger, 99, told CNBC’s Becky Quick during a live stream of the event, adding: “It’s totally absolutely crazy, stupid gambling.”
The 99-year-old longtime stock investor with a net worth of $2.3 billion, who is a close friend of Warren Buffet, said that it’s a shame the US government has allowed it because it’s pure gambling where no one can win.
“I think the people who oppose my position are idiots, so I don’t think there is a rational argument against my position,” he said.
“A cryptocurrency is not a currency, not a commodity, and not a security,” Munger also wrote in an op-ed. “Instead, it’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity.”
“Obviously the US should now enact a new federal law that prevents this from happening,” Munger added.
According to the billionaire, the US Congress should follow the example set by China, which banned cryptocurrency trading and mining in 2021 due to concerns about its potential risks.
Munger’s comments also come amid an avalanche of problems for crypto investors over the past year.
The crypto market lost roughly $2 trillion last year. Bitcoin, one of the most popular cryptocurrencies, lost more than 60% of its value in 2022. And the implosion of FTX, a now-bankrupt crypto trading platform once valued at $32 billion, has shaken investors’ confidence as the industry feels the ripple effects of the company’s collapse.