Charlie Munger Once Again Undermines Bitcoin
Similar to Warren Buffett, chairman of Berkshire Hathaway, his partner Munger is a scathing critic of Bitcoin (BTC). While speaking to the shareholders at the 2021 Daily Journal yearly meeting hosted by Yahoo Finance, the 97-year old once again issued a negative statement on the king of crypto.
While answering to queries from shareholders with regards to Bitcoin, Munger said:
“I don’t think Bitcoin is going to end up [being] a medium exchange for the world. It’s too volatile to serve well as a medium of exchange.”
In comparison to Munger’s earlier comments about Bitcoin, the views on Bitcoin this time seems to be somewhat softer. As a matter of fact, few years before, Munger had stated that Bitcoin investors are commemorating Judas Iscariot’s work and life.
Three years before, during the yearly meeting of Daily Journal, Munger called cryptos as absolutely “asinine.” He even went to the extent of calling professional cryptocurrency traders as “disgusting.”
During Berkshire Hathaway’s yearly meeting three years before, Munger equated cryptocurrency market to “trading turds.” During the same event, Buffett also made the ill-famed “rat poison-squared” comment on Bitcoin.
With progressive work on scaling systems such as Lightning Network and other sidechains currently being done, it is not appropriate to state whether Bitcoin will act as an efficient mode of payment.
Nevertheless, the argument in favor of Bitcoin as a store of value is gaining traction in spite of cynical statements made by goldbug Peter Schiff and Nouriel Roubini. Munger also gave his opinion on Bitcoin being called as digital gold. He said:
“It’s really kind of an artificial substitute for gold and since I never buy any gold, I never buy any Bitcoin, and I recommend other people follow my practice.”
The Berkshire Hathaway vice chairman also made a statement against Bitcoin again. Munger quoted Irish poet and writer Oscar Wilde and paralleled Bitcoin to hunting of fox:
“It’s like what Oscar Wilde said on fox hunting: the pursuit of the uneatable by the unspeakable.”
The close friend of Buffett also brushed away Daily Journal’s thought of adding Bitcoin to the company’s balance sheet, in line with enterprises such as Tesla. Interestingly, Munger continues to hold have a lot of confidence about traditional banking institutions. This is reflected in his statement saying that “a properly run bank is a great contributor to civilization.”