Why Berkshire’s Charlie Munger ‘hates’ Bitcoin’s meteoric rise

2 min read | May 03, 2021 04:16 PM AEST | By Team Kalkine Media

Google News:

Why Berkshire’s Charlie Munger ‘hates’ Bitcoin’s meteoric rise — Image source: Momentum Fotograh, Shutterstock

Recent News

Why REIT Income Remains a Key Focus on ASX 200

Defensive Strength ASX 200 Hidden in Infrastructure Assets

Can ASX 200 Banking Giants Shape Retirement Security?

Can ASX 200 Wealth Leaders Shape Australia’s Retirement Future?

Make Kalkine Media
My Trusted Source

Summary

Expressing his dislike for Bitcoin, Berkshire Hathaway’s Vice Chairman Charlie Munger on Saturday said: “Of course I hate the bitcoin success.”

The 97-year-old Munger was speaking at a Q&A session at the Berkshire’s annual shareholder.

The veteran investor also said that the entire development around Bitcoin’s rise was contrary to the interests of the civilization.

Even as Bitcoin scripted a record run this year, Berkshire Hathaway’s Vice Chairman Charlie Munger is not impressed by the digital currency. Munger, a long-time business partner of Berkshire Hathaway CEO Warren Buffett, expressed his disdain for Bitcoin saying, “Of course I hate the bitcoin success.”

“I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth, nor do I like just shuffling out of your extra of billions of dollars to somebody who just invented a new financial product out of thin air,” CNBC quoted 97-year-old Munger as saying during the Q&A session at Berkshire’s annual shareholder meeting Saturday.

Source: © Aoutphoto | Megapixl.com

READ MORE: Warren Buffett roots for retained earnings, rues Apple share sale
However, Buffett avoided any direct response to the question on Bitcoin.

Bitcoin’s stellar rise

The popular cryptocurrency has rallied significantly in 2021, surpassing US$60,000 apiece in April. Also, it rose more than 10% on the last day of previous month. The interest around the cryptocurrency specially surged after Tesla, in February, made a US$1.5 billion bet on it.

Companies such as MasterCard, Square, PayPal and others have begun accepting virtual currencies like Bitcoins as payments.

Source: © Chakisatelier | Megapixl.com

Munger’s dislike for Bitcoin

Munger’s dislike for Bitcoin is owing to its extreme volatility. Even the fact that the cryptocurrency market lacks regulation makes Bitcoin unattractive for Munger. Recently, he had said that inherent volatility in Bitcoin makes it unfit to serve as a medium of exchange.

“It’s really kind of an artificial substitute for gold. And since I never buy any gold, I never buy any bitcoin,” Munger had then said.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.