Veteran investor and chairman of Berkshire Hathaway, Charlie Munger dismissed Bitcoin during a Q&A session, calling it too volatile to be considered a global medium of exchange. The long-time business partner of Warren Buffet even termed the leading cryptocurrency as an artificial substitute for gold and that he would never buy any Bitcoin, admitting that he never did buy gold anyway.
‘Bitcoin Too Volatile to be a Medium of Exchange’
At the Daily Journal’s annual meeting hosted by Yahoo Finance, in a Q&A session, the Berkshire executive spoke about Bitcoin, corporate investment in the cryptocurrency, and his views about it.
On being asked if the biggest threat to banking was Bitcoin or digital wallets like PayPal or Apple Pay, he said:
“I don’t think I know what the future of banking is, and how the payment system will evolve. I do think that a properly run bank is a great contributor to civilization and that the central banks of the world like controlling their own banking system and their own money supplies.
He even advised investors to not buy Bitcoin as it’s too volatile to even considered as a medium of exchange saying:
“I don’t think Bitcoin is going to end up becoming the medium of exchange for the world. It’s too volatile to serve well as a medium of exchange.”
Munger Won’t Follow Tesla’s Model of Bitcoin Investment
Charlie Munger heads The Daily Journal Corporation is a U.S. publishing company and has equity stakes in Bank of America and U.S. Bank. On being questioned if the Daily Journal would consider bitcoin as an asset on the balance sheet, similar to Tesla’s recent investment, Munger dismissed the possibility, saying:
“No, we will not be following Tesla into bitcoin.”
Tesla recently announced investing $1.5 billion worth BTC, further fuelling the cryptocurrency’s rally and sending it past $50,000.
When asked about Bitcoin’s price and Tesla’s market cap, he said he didn’t know which was crazier, Bitcoin hitting $50,000 or Tesla reaching a fully diluted enterprise value of $1 trillion. He simply quoted writer Samuel Johnson, saying, that Bitcoin reminded him of what Oscar Wilde said about fox hunting that it was the pursuit of the uneatable by the unspeakable.