Munger: I don’t know which is worse, Tesla or bitcoin

On February 25, Charlie Munger, a close friend of Warren Buffett and vice chairman of Berkshire Hathaway, answered questions from investors at the shareholders’ meeting of his newspaper company daily journal on Wednesday. Asked whether “bitcoin reaches $50000” or “Tesla’s fully diluted corporate value reaches $1 trillion”, Munger said, “I met Samuel Johnson (18th century British writer) Johnson, who once said, “I can’t decide the priority between fleas and lice,” and I have the same view on both. I don’t know which is worse. ” Tesla shares soared 743% last year, although they have fallen about 3% so far this year. Its market value is currently about $689 billion. Bitcoin has soared to more than $50000 in the past week after Tesla announced its purchase of $1.5 billion. Munger was also asked what was the biggest threat to the banking industry, bitcoin or digital wallets like apple pay and square. “I don’t think I know what the future of banking will be, or how payment systems will develop,” he said. I do believe that a well run bank has made a great contribution to civilization, and central banks around the world like to control their own banking systems and their own money supply. So I don’t think bitcoin will become a global medium of trade. It is too volatile to be a good medium for trading. It’s actually an artificial substitute for gold. And since I never buy any gold, I never buy bitcoin. ” Munger advises others to do the same. Munger said that bitcoin hype is like Oscar Wilde’s description of the British fox hunting – the pursuit of the uneatable by the unspeakable – a group of dumb people (Wilde refers to the British) chasing a group of inedible prey (no one eats fox meat).

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