Billionaire investor Charlie Munger has called Bitcoin a “disruptive threat” to traditional finance, commenting on the digital currency’s growing acceptance in recent months. In an interview with Yahoo Finance, Munger expressed his skepticism towards cryptoassets while simultaneously emphasizing that he believes its impact would be significant.
Munger asserted that people should be wary of Bitcoin’s meteoric price rise, noting that it was “propelled primarily by speculative mania” and that this speculative nature could collapse Bitcoin’s price quite quickly.
Munger also expressed his displeasure with the libertarian leanings often associated with Bitcoin’s usage, proclaiming that it was “too anti-social, provocative, and crazy” to have a lasting impact on the world economy. Despite his critique of the digital currency, he admitted that its rise was “more to [him] than a passing fad” and that he believes it will “have a big effect” in the long-term.
Munger concluded his comments discussing the potential for Bitcoin to disrupt finance in the same way that Uber re-shaped transportation or Airbnb re-shaped the hospitality industry. Ultimately, he predicted that if and when Bitcoin becomes more widely accepted, it would “probably have some effect continuously” on traditional financial systems.
