The executive director of GLJ Research, Gordon Johnsonintensified his criticism towards Bitcoin (CRYPTO:BTC) on Thursday, repeating the skepticism of the late vice president of Berkshire Hathaway Inc. (NYSE:BRK-A) (NYSE:BRK-B), Charlie Mungerand addressing major financial institutions for their role in the Cryptocurrency markets.
What happened
“Bitcoin, as Charlie Munger said, is rat poison,” Johnson wrote in x. “It has no use case, generates no value/cash flow and is worthless.” Specifically, he accused BlackRock Inc. (NYSE:BLK) and Fidelity Investments to profit from trading commissions while fueling what it describes as a speculative bubble.
Johnson’s comments come at a time when Bitcoin is trading near $95,000, having recently surpassed the $100,000 mark. He emphasized that cryptocurrency miners quickly convert Bitcoin into traditional currency to cover operating costs, suggesting this undermines claims about the cryptocurrency’s long-term value.
#bitcoinas Charlie Munger said, it rat poison. It has NO use case, generates NO value/cash-flow, & is worthless. It’s a purely speculative “tulip” that’s in a bubble thanks to (VERY) loose financial conditions enabled by the Fed, & extreme greed from folks like… https://t.co/5HqBehI4M7
— Gordon Johnson (@GordonJohnson19) December 19, 2024
Why is it important
Johnson’s criticisms coincide with the opinions expressed by Munger, who died in November 2023 at the age of 99. During the 2022 Berkshire Hathaway shareholder meeting, Munger strongly advised against including Bitcoin in retirement accounts.
Munger’s longtime business partner, the Berkshire CEO, Warren Buffettshared similar concerns, and has labeled Bitcoin “rat poison squared.”
These skeptical opinions contrast with the growing institutional acceptance, which is reflected in the approval by the US Securities and Exchange Commission (SEC) of Bitcoin Spot ETFs. Major financial firms such as BlackRock and Fidelity have launched Bitcoin funds, with products such as iShares Bitcoin Trust (NASDAQ:IBIT) and Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) that have attracted significant interest from investors.
Photo courtesy of Shutterstock
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