GLJ Research CEO Gordon Johnson Intensifies Criticism of Bitcoin, Targeting BlackRock and Fidelity Investments

GLJ Research CEO Gordon Johnson intensified criticism of Bitcoin BTC/USD on Thursday, echoing late Berkshire Hathaway Inc. Vice Chairman Charlie Munger‘s

GLJ Research CEO Gordon Johnson slammed Bitcoin (CRYPTO: BTC) on Thursday, echoing late Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) Vice Chairman Charlie Munger's skepticism and targeting major financial institutions.

“Bitcoin, as Charlie Munger said, it rat poison,” Johnson wrote on Twitter. “It has NO use case, generates NO value/cash-flow, & is worthless.”

He specifically called out BlackRock and Fidelity Investments for profiting from trading fees while fueling what he describes as a speculative bubble.

See More: Best Bitcoin ETF List

Johnson's comments came as Bitcoin traded at around $97,843, having recently crossed the $100,000 mark. He pointed out that crypto miners were quickly converting Bitcoin to fiat currency to cover operational costs, which he said belied claims about the cryptocurrency's long-term value.

Bitcoin's recent rally has been fueled by a number of factors, including the Federal Reserve's easy monetary policy, strong demand from institutional investors, and limited supply. However, some analysts have warned that the cryptocurrency is now overvalued and due for a correction.

Johnson's criticism of major financial institutions for their role in cryptocurrency markets is also likely to resonate with some investors. BlackRock and Fidelity have both launched Bitcoin funds, and their involvement has helped to legitimize the cryptocurrency in the eyes of some mainstream investors. However, Johnson argues that these institutions are more interested in generating trading fees than in protecting investors from what he sees as a speculative bubble.

Johnson's and Munger's skepticism of Bitcoin stands in contrast to the growing institutional acceptance of the cryptocurrency. The Securities and Exchange Commission recently approved spot Bitcoin ETFs, and several major financial firms, including BlackRock and Fidelity, have launched Bitcoin funds. Products such as the iShares Bitcoin Trust (NYSE Arca:IBIT) and Fidelity Wise Origin Bitcoin Fund (NYSE:FBTC) have attracted strong investor interest.

After Munger's Death, Buffett Continued To Express Skepticism About Bitcoin At 2023 Berkshire Meeting

Following Munger's passing in November 2023 at age 99, his skeptical views on Bitcoin continued to be heard. At Berkshire Hathaway's 2022 shareholder meeting, Munger strongly advised against including Bitcoin in retirement accounts.

"I'm telling you, I like the Chinese. I think they're smart people," Munger said at the meeting. "They realized that Bitcoin was rat poison and banned it. I wish our government were smart enough to do that."

Munger's longtime business partner, Berkshire CEO Warren Buffett, shared similar concerns, having famously labeled Bitcoin as “rat poison squared.”

These skeptical viewpoints are juxtaposed with the growing institutional acceptance, which saw the SEC approving spot Bitcoin ETFs and several major financial firms, including BlackRock and Fidelity, launching Bitcoin funds. Products like iShares Bitcoin Trust IBIT and Fidelity Wise Origin Bitcoin Fund FBTC have garnered substantial investor attention.