Charlie Munger, Vice Chairman of Berkshire Hathaway advised that investors should refrain from purchasing Gold as well as Bitcoin. Says while crypto is immensely volatile yet the Gold investment would be seriously impacted by upcoming inflation.
Charlie Munger is regarded as a living legend in the field of investment. His opinions and analysis are not only revered but also implemented by top notch economic giants of the world. He is currently service as the Vice Chairman of globally acclaimed company known as Berkshire Hathaway. He is also a shareholder of Daily Journal Corporation of the US and runs the journal in Chairman’s capacity as well.
In addition, he is also famously known to be the key focal man for Warren Buffett. In the US, he is regarded as one of the most influential people.
He is turning 98 this year and has vast experience in the field of business and commerce. But one thing is sure about him that he had never been a friend of Bitcoin and other digital products throughout his life. At one occasion he was found stating that Bitcoin to him is like “rat poison”. He added further at that time that Bitcoin has turned traditional into something he called “trading turds”. Following his remarks, Warren Buffett was later found suggesting first every cryptocurrency as “rat poison squared”.
Very recently, the Daily Journal Corporation of the US has held its Annual General Meeting in which Munger also took part. During the course of the meeting, Munger spoke about Bitcoin as well as Gold.
In the annual meeting, he suggested that he never came to believe that Bitcoin is a better medium for trade and exchange. He said that he is the man of present and does not know what would come in the past regarding banking sector. He suggested that he has failed to foresee any change-cum-evolution within the financial system.
He explained that to him Bitcoin would never ever replace or at worst overtake present trading and exchange system of the world. There is permanent danger of volatility within Bitcoin which the digital coin would never be able to get rid of.
He went on to state that Bitcoin and other so-called assets like Bitcoin remind him of Oscar Wilde’s remarks about fox hunting. He stated that Wilde has once quoted that fox hunting, like uneatables are chased by those who lack the ability to speak.
The participants of the meeting asked him about what he finds more intriguing i.e. Bitcoin hitting above US$ 50K or the Tesla company. Munger responded that both are intriguing in their own places but one is louse and the other is flea. However, they couldn’t arrive at a consensus in case of dispute as by nature they can’t sit idle for few second.
At the end of his talk, he said that in his opinion investors shouldn’t put their money into Bitcoin or Gold. He advised that Bitcoin is too impacted by its volatility while Gold would be impacted by upcoming inflation.