Buffet's right-hand man, Charlie Munger has called Bitcoin worthless and said he will never trade it or own it.
Charlie Munger on Saturday aired his views on what he thinks of Bitcoin. Mumger who is an American billionaire, investor, philanthropist and so on is also the vice chairman of Berkeley Hathaway. The company which is mostly regulated by Warren Buffet. He is known as a very close ally of Mr. Buffet's.
Major Signals
- Munger called Bitcoin a couple of names including disgusting, worthless, and shouldn't be in a civilization.
- Munger agreed that Bitcoin is a store of value like gold.
- Buffet sensed his opinion
- Other critics like Schiff have also seconded their opinion.
Munger was asked concerning his views on Bitcoin, the 97-year old said that He doesn't care for bitcoin. He said that he felt no comfort giving money to buy a purchase for which the products were manufactured from nothing. He also expressed dislike for the fact that some unscrupulous individuals and organizations use bitcoin to finance their operations.
He also described the foremost crypto currency as disgusting and contradictory to civilization's interests.
Bitcoin is known for the volatility of it's markets. Over the years, institutions, governments and even everyday people turned up their noses at it. But recently, the narrative has been changing.
Despite the volatility, a number of businesses and investors took advantage of the opportunity. In February, Elon Musk revealed that Tesla would consider bitcoin as a form of payment for all versions of its cars in the US. Its usefulness is being defined beyond that of a potential currency and into that of a store of value.
About this, Munger who has always been a bitcoin critic said that labelled a synthetic alternative for Gold. Gold has been one of the commodities used as a store of value over the years. Munger however goes on the to say that he has never traded in gold not bitcoin and would not advocate it.
Buffet on the other hand, was vague, despite initially calling cryptocurrencies inconsequential and high - risk.
However, Munger and Buffett aren't the only ones who are wary of cryptocurrencies.
Last week, Euro Pacific Capital's global strategist and chief economist, Peter Schiff, declared bitcoin to be worthless.
"When the performance ends, I don't think these bitcoin collections will be worth something." He said, "... For Bitcoin, you can't do anything. It's useless once no one wants your bitcoin.
Conclusion
Warren and Munger have long been unapologetic in their criticism of bitcoin. But most people hope that like Elon Musk or Mark Cuban, they will have a change of heart and embrace cryptocurrencies. But if they don't, it takes nothing away from cryptocurrencies.
Ethereum is up 28% in the last 7 days, and 65% in 30 days. Bitcoin recently hit a new all-time high above $60,000. It's currently trading in the $55,000 range and some analysts think that from various indicators bitcoin might soon enter a bull trend.
Question of the day
What do you think of Charlie Munger's opinion on Bitcoin? Let us know in the comments.
