Who Are the Biggest Critics of Bitcoin?

Bitcoin is dead! The phrase has been repeated about 433 times since the advent of this digital currency, according to the 99bitcoins site. Famous and great people have called this asset worthless and insignificant, but do the statements of these people and their comments about Bitcoin and the revolution that this digital currency has launched in the world of the economy stop this trend? Why do the biggest Bitcoin critics criticize this cryptocurrency?

Various cryptocurrency projects have repeatedly and strongly responded to the opposition with rising prices, but apparently, these people are not going to be compatible with cryptocurrencies.

Many believe that critics such as Warren Buffet and Charlie Munger are skeptical of them because they do not have enough knowledge and understanding of the nature and function of digital assets.

Bitcoin has critics as well as a lot of fans and a positive atmosphere around it. In this article, we will read about critics and great enemies of cryptocurrencies on the Medium website and get to know these people better.



Charlie Munger

Charlie Munger, 97-year-old, Berkshire Hathaway’s second-in-command and Warren Buffett’s deputy, condemns bitcoin: “Of course, I hate the success of Bitcoin. I do not welcome a currency that benefits slaughterers, thieves, and other criminals. In my opinion, this progress is disgusting and against the interests of our human civilization.”

Munger and Warren Buffett (President of Berkshire Hathaway) have amassed great wealth by buying stocks and investing in companies; Therefore, it is not surprising that these people do not need to buy a cryptocurrency and do not understand digital currencies properly. The point is, however, that Munger does not explicitly state what he means by “against the interests of human civilization.” In the part of his speech that says that drug dealers and criminals use bitcoin, the answer should be: Yes, it is true! But criminals also use cash. It is estimated that in 2020, only 0.34% of all encrypted asset transactions were devoted to illegal and criminal activities. However, between 2 and 4 percent of the world’s gross domestic product is allocated to criminal activities, which are also carried out through the traditional banking system; A number that is much higher than digital currencies.

However, this does not mean that the new technologies of the Chinese blockchain and bitcoin conflict with the interests of human civilization. Munger points out elsewhere that bitcoin is used as a substitute for gold, so why should he buy bitcoin when he is not buying gold at all? Berkshire Hathaway only hopes for companies that are profitable for it!



Warren Buffett

Warren Buffett says about Bitcoin: “Bitcoin is the death of a very powerful mouse.”

Warren Buffett made the remarks in response to a question from Fox Business reporter Liz Claman about bitcoin. His colleague, Munger, had previously referred to bitcoin as the death of a mouse. Texture opposition to bitcoin can be summarized in three sections.

First, bitcoin seems to have no intrinsic value in itself, a similarity that exists in paper money. In his view, the only value of bitcoin is that someone wants to buy it at a higher price in the future; This feature is not unlike stocks.

In the second case, Warren Buffett, known as the forerunner of the Oracle of Omaha, feels that bitcoin has neither the characteristics of money nor can it be considered a Store of Value. Bitcoin, like any other technology, is gradually becoming more and more popular as an exchange tool. Thousands of retailers around the world now accept Bitcoin payments. In addition, Bitcoin, as the fastest and cheapest means of money transfer, is rapidly taking the place of Western Union’s financial and communication services company. In terms of value storage, Bitcoin has averaged 200 percent annual growth over the past twelve years. So it can be said without fear that bitcoin is a store of value, although there are fluctuations.

The third is that the context may not have a complete understanding of bitcoin. Buffett does not invest in things he is not aware of, which of course is commendable. He has focused on stocks and buying corporations and, like many of us, has not entered the complex world of bitcoin; So his performance is quite plausible. He is without a doubt one of the greatest investors the world has ever seen, and his record speaks for itself. Buffett says in an interview: I do not have bitcoins and I will never buy bitcoins.



Paul Krugman

Paul Krugman is a Nobel Prize-winning economist and author of the 2013 article “Bitcoin is Evil” in the New York Times. He has been critical of Bitcoin ever since.

Krugman feels that bitcoin has still not been able to find a role in current economic activity after 12 years. Like other Bitcoin critics, he thinks that Bitcoin is the money of a drug dealer.



The bottom line

Although we see the presence of economic elite investors among the critics of bitcoin and digital currencies, their statements and opinions are certainly not the chapters of speech, and at the same time, there are many objections to their statements. On the other hand, some celebrities admire Bitcoin and its achievements, and their opinions are in complete contradiction with the critics. They believe that Bitcoin has created a good opportunity for change in the world economic cycle; A feature that cannot be achieved with the old structure of the economy.

Although bitcoin and digital currencies have a shorter history than gold or Fiat currency, in a short period, they have shown their capabilities and have been able to offer users a variety of choices.

Finally, the question must be answered, what do people want? Do they want to continue to use the worn-out financial system and centralized banking, despite the countless advances in the world of technology, relying solely on the claims of celebrities, or to join the train of progress by increasing knowledge and research?


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