Billionaire Nonagenarian, legendary investor, and polymath, Charlie Munger, shared his thoughts on bitcoin recently and quoted Oscar Wilde in the same breath too.
Bitcoin questions were presented at the Annual Meeting of Shareholders of the Daily Journal Corporation (DJCO) by Yahoo Finance correspondent Julia La Roche where Munger ended his comments saying:
“Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it was the pursuit of the uneatable by the unspeakable”.
Charlie Munger is the Vice-Chairman of Berkshire Hathaway and Warren Buffett's long-time business partner. Munger is also the chairman of Daily Journal Corporation which has been publicly traded since 1987 on the NASDAQ.
Munger’s Thoughts say Nay to Bitcoin
Munger was asked if bitcoin could be one of the biggest competitive threats to US banks. Munger replied:
“Well, 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. So, 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. And 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.”
When asked if bitcoin or any other crypto would make its way to the DJCO’s balance sheet as an asset as Tesla did, Munger answered:
“We will not be following Tesla and the Bitcoin.”
Munger’s Stance Hasn’t Changed in Years
Munger has always been a vehement critic of bitcoin. He was reported to have called bitcoin “a total insanity” speaking as a guest in an event hosted by the University of Michigan’s Ross School of Business in November 2017. On a phone interview with CNBC’s “Squawk Box” in January 2018, he referred to Bitcoin and other cryptocurrencies as “bubbles.”
A month later, at a Q&A session at the Daily Journal’s 2018 annual shareholders meeting, once again, Munger had no love for Bitcoin, calling it a “noxious poison.” In an interview with Yahoo Finance in April 2018, Munger criticized bitcoin and other cryptocurrencies, saying that those buying them were speculating rather than investing. His latest comment comes as no surprise.
Bestie Warren Buffet Thinks Along The Same Lines
Warren Buffet, CEO of Berkshire Hathaway and business tycoon, has stated that cryptocurrencies will end badly. At the Berkshire Hathaway 2018 annual shareholder meeting in May 2018, Buffett stood by his criticism on bitcoin, saying it is “probably rat poison squared,” CNBC reports.
Not Everybody in Wall Street Hates Bitcoin
A recent article by CNBC mentioned that the wall-street bigwigs are talking about bitcoin. Wall Street banks are definitely feeling the heat that bitcoin’s spiking value has left in its trail. JPMorgan co-president Daniel Pinto said:
“If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved. The demand isn’t there yet, but I’m sure it will be at some point.”
This is a sharp turn JPMorgan has taken considering JP Morgan CEO Jamie Dimon's standpoint during bitcoin’s boom-cycle in 2017 where he called bitcoin a fraud that wouldn’t end well.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.