They call it open sewer, rat poison, and venereal disease: 5 celebrities who oppose cryptocurrencies

Charlie Munger, Berkshire Hathaway’s VP and Warren Buffett’s right-hand man, has criticized cryptocurrencies and the industry around them. Again. In a recent interview, the investor called the web3 space an “open sewer” flooded with scammers selling worthless digital coins. We mostly write about those who are advocates of cryptocurrencies, but it’s probably okay for the technology to have its haters. Here are some of them. 

Charlie Munger

Let’s start with the one who was last on the news agenda to speak out against cryptocurrencies. It’s worth mentioning that this is not the first time Charlie Munger has spoken out against the technology. He does it all the time. In May, during Berkshire Hathaway’s annual shareholder meeting, the billionaire predicted the collapse of Bitcoin. In his opinion, the coin is undermining the U.S. Federal Reserve, which America “desperately needs.” 

More lately, in an interview in the Australian Financial Review, Munger called the “cryptocurrency obsession” in recent years a form of “mass insanity.” He also noted that cryptocurrencies are “investments in nothing” that you have to be “almost crazy” to consider. 

“I just avoid it as if it were an open sewer full of pests. And I recommend that everyone else follow my example,” he said. 

The investor also added that he thinks anyone who sells cryptocurrencies is either delusional or evil. However, this is not the harshest thing he has said about cryptocurrencies. He previously compared the technology to a “venereal disease,” which he would be happy to avoid.

Warren Buffett

Financial and political critics consistently dismiss cryptocurrencies as having no purpose other than to harm the environment and launder money. When mentioning them, Warren Buffett is not shy about expressing himself. For example, the investor called Bitcoin “rat poison,” a statement that 30% of big Wall Street investors agreed with last year. 

Recently in May, he said he wouldn’t buy all of the existing Bitcoin even for $25 because the asset “doesn’t produce anything.” Also, the billionaire forecasted that ultimately dollars are what is accepted as money and that the U.S. government will never allow something like Bitcoin or another digital asset to replace it. 

What else would you expect from an old-school representative who keeps all his capital in traditional currencies? Okay, let’s move on. 

Bill Gates

It would seem that the man of technology, thanks to which humanity has made an unprecedented step forward, should support everything innovative. Still, Microsoft co-founder Bill Gates is one of those who are against cryptocurrencies and everything associated with it. 

Recently, during the TechCrunch Sessions: Climate 2022 conference, Bill Gates stated that the popularity of cryptocurrencies and NFTs is based on the “greater fool” theory. That’s an idea that one can make money by investing in overvalued assets and selling them for a profit later exactly because there will always be someone else who will come along and pay a higher price.

“Obviously, expensive digital images of monkeys will make the world a much better place,” Gates said sarcastically, criticizing NFT collectors of Bored Ape Yacht Club tokens depicting bored monkeys in various human outfits. 

Also, Bill Gates noted that he does not long or short any of “those things” because he prefers to invest in “things that have valuable output.”

Maybe Gates’ view of the future wasn’t so far off and didn’t extend to cryptocurrencies? Well, that’s sad.

Peter Schiff

Among the so-called BTC skeptics stand out an American stock broker, financial commentator, and investor Peter Schiff. He constantly criticizes cryptocurrency and calls it a bubble. In his opinion, only gold can be called a hedging instrument.

In his opinion, Bitcoin is a speculative asset, and most investors will always suffer losses if they decide to invest some of their capital in it. And in May, Peter Schiff predicted a BTC crash to $8,000.

Schiff analyzed the cryptocurrency’s current position and concluded that it should not count on support in the current cycle. He likely said investors should wait for a substantial pullback, and bitcoin will find the bottom at only around $8000.

According to Schiff, it is better to direct all capital to purchasing precious metals. In this case, the investor will protect his savings from inflation, which is accelerating.

By the way, regulators in Puerto Rico recently closed Schiff’s bank, Euro Pacific. According to him, the problems are related to the net worth of the financial institution. Schiff added that accounts are frozen, and customers could lose money. However, finding himself in this situation, the businessman was ready to go against his principles. According to the latest news, he is prepared to sell his bank even for Bitcoin or any other digital asset if regulators allow it. 

Well, principles are principles, but nobody wants to lose money. However, the businessman himself states that his main goal is, first of all, to protect his clients. Yes, we believe it (maybe). 

Donald Trump

We should not forget that former U.S. President Donald Trump has repeatedly criticized cryptocurrencies and does not intend to change his opinion. In particular, he noted that he is “not a fan” of cryptocurrencies and does not invest in bitcoin or its analogs. 

“I like U.S. currency. Investing in cryptocurrency hurts the U.S. economy. Keep your funds in dollars,” he said. 

According to him, it is the dollar that should become the main currency in the world. In June 2021, he called Bitcoin a “scam” and the euphoria surrounding it destructive to the dollar. Moreover, during his presidency, he planned to “put an end” to cryptocurrency and stop trading. He made this request to U.S. Treasury Secretary Steven Mnuchin in May 2018. 

And last July, Trump said that cryptocurrencies are not money, they are incredibly volatile, and their value is “taken from the ceiling.” 

“Who knows what they are, but it’s definitely something that people don’t know much about,” Trump noted. 

If we don’t know anything about cryptocurrencies, does that mean we should be afraid of running them? Especially when it comes to the future. We don’t think so. Do you?