Berkshire Hathaway’s vice chairman and Warren Buffett’s long-time business partner, Charlie Munger, has advised investors not to buy bitcoin or gold. He believes the cryptocurrency is too volatile to serve well as a medium of exchange. Munger also says he doesn’t know which is worse between Elon Musk’s Tesla reaching $1 trillion in market cap or bitcoin hitting $50,000.
Billionaire Investor Charlie Munger Thinks Bitcoin Is Too Volatile to Be a Good Medium of Exchange
Legendary investor Charlie Munger answered some questions about bitcoin at the annual meeting of shareholders of the Daily Journal Corporation in Los Angeles on Wednesday. The Berkshire Hathaway vice-chairman and Warren Buffett’s long-standing business partner is also chairman of the Daily Journal. He is often known as Warren Buffett’s right-hand man.
During Wednesday’s meeting, Munger began by explaining why he does not see bitcoin as a future medium of exchange. “I don’t think I know exactly what the future of banking is, and I don’t think I know 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 described, elaborating:
I don’t think bitcoin is going to end up the medium of exchange for the world. It’s too volatile to serve well as a medium of exchange.
“Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it’s the pursuit of the uneatable by the unspeakable,” Munger further opined.
Munger Talks About Tesla vs. Bitcoin
When asked about which he thought was crazier, the price of bitcoin hitting $50,000 or Elon Musk’s electric car company, Tesla,…