At the annual meeting of the Daily Journal, Vice Chairman of Berkshire Hathaway, Charlie Munger, spoke against Bitcoin, dismissing the swift rally of the cryptocurrency.
“I don’t think Bitcoin will become a medium of exchange for the world,” he said. “It is too volatile to be a good medium of exchange, and is kind of an artificial substitute for gold,” he added.
According to Munger, one main reason is that central banks like to control their banking system and their cash reserves.
To add to that, Munger doesn’t like gold. Hence: “Since I never buy gold, I never buy bitcoins. I recommend other people to follow my practice.”
Munger also said Bitcoin reminds him of an old quote from Oscar Wilde about hunting foxes: “Hunting for foxes is an ineffable pursuit of the inedible” (from The Woman Who Doesn’t Matter).
A shareholder then asked Munger if the Daily Journal would follow Tesla’s example and include Bitcoin in its balance sheet. To it, Munger responded: “We will not follow Tesla in Bitcoin”
He also spoke negatively about brokers such as Robinhood, calling it “a dirty way to make money.”
When asked which was better between Tesla’s stock price or $ 50,000 Bitcoin, he answered: “I can’t determine the order of priority between flea and lice, I feel the same here.”
Of course, this isn’t the first time Munger has verbally smashed Bitcoin.
Earlier, he said there are better things to invest in. However, this was in 2018, when Bitcoin was worth only $ 9800. Now, the cryptocurrency has exceeded 48,000.