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Munger: Bitcoin Is "The Stupidest Investment" I Ever Saw
Berkshire Hathaway's Vice President has reiterated his total disdain for all things crypto.
Charlie Munger, the Vice Chairman of Warren Buffett's incredibly successful investment firm, Berkshire Hathaway, has reiterated his contempt for cryptocurrency, as well as weighing in on AI.
During the Zoomtopia conference last week, Munger, who has a net worth of over $2.5 billion, was asked about his forecasts for bitcoin and crypto. "Don't get me started on bitcoins. That was the stupidest investment I ever saw," he said, stating that most crypto investments would go to zero.
Munger and Buffett have both been vocal critics of bitcoin and other cryptocurrencies over the years, calling for the US government to stop them, and describing them in a range of colorful ways including "turds" and "rat-poison squared".
In February, in an interview with CNBC, Munger called those who oppose his view "idiots". "It's ridiculous that anybody would buy this stuff", he said.
In Munger's view, national currencies have been one of the most important and beneficial developments in human history, and seeking to replace them is "massively stupid" and harmful. He said he is ashamed of his country for allowing it to proliferate. (China, he believes, had the right approach of banning bitcoin.) "It's unspeakable. It's an absolute horror!"
"There is only one correct answer for intelligent people: Just totally avoid it," he warned. "And avoid all the people that are promoting it."
Legalized gambling is not as bad, Munger said, stating there wasn't much harm in betting a modest amount on the Superbowl.
Buffett has made similar warnings, explaining 10 months ago that Bitcoin produces "nothing of value", since it does not have a revenue stream like a stock or a bond (a criticism that equally applies of gold and other commodities).
Taking up the baton, the 99-year-old Munger described crypto as "dementia".
In the Zoomtopia call, he was not quite as disparaging about AI. However, he suggested that the technology might be getting "more hype than it deserves".
Berkshire Hathaway's compound annual gain from 1965 to 2022 has been 19.8% , compared with 9.9% for the S&P 500. Overall, this represents a total return of 3.8 million percent, vs a mere 24,700% for the stock market.
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