Charlie Munger: Bitcoin Is Still A Mystery

Anyone who follows Michael Saylor knows that he’s a huge fan of Bitcoin and its potential. But Charlie Munger—Saylor’s business partner—doesn’t share his enthusiasm. Lucky for us, he’s been talking about it recently and giving us some insight into why he can’t seem to get on board with the whole crypto thing.

No Thank You

Munger recently had a few choice words for Bitcoin during the annual shareholder’s meeting for Berkshire Hathaway. When asked about his thoughts on the cryptocurrency, Munger said, “Of course I hate it…It’s really a chief competitor of gold. It’s like some artificial substitute. And I don’t like it. No thank you.”

Well, if this doesn’t make it clear how Munger feels about Bitcoin, we don’t know what will.

What’s The Big Deal?

It’s not hard to figure out why Munger doesn’t like Bitcoin. He’s made it known in the past that he’s not much of a risk-taker and he’s definitely not a fan of things that are hard to understand. So, it would only make sense that he has a hard time wrapping his head around cryptocurrencies.

Plus, he’s been known to dismiss the concept due to its lack of physical form and its decentralized nature. As he put it himself, “I have no interest in having a currency that you can’t touch or [which is] only in cyberspace…It’s like saying you don’t have any paper money, it’s only digital or maybe it’s not digital yet, we don’t know.”

What Now?

It looks like for now, Munger is giving Bitcoin a hard pass. But he also acknowledged that Saylor has opened his eyes to the potential that Bitcoin could have in the future. Who knows, maybe one day he’ll actually hop on the crypto train.

At least until then, here are a few things we know for sure:

  • Munger isn’t a fan of the risk associated with Bitcoin

  • He doesn’t understand the concept of a decentralized currency

  • He has conceded that he has been persuaded by Saylor to think differently about crypto

So if you’re still trying to figure out if Charlie Munger is a secret crypto fan, it looks like the answer is still a firm “No”. But hey, stranger things have happened.