Berkshire Hathaway Vice Chairman Charles Munger has once aimed at Bitcoin and cryptocurrencies, declaring they are the worst kind of investments.
Munger, known for his candid and often controversial views, commented on Thursday during the annual Zoomtopia online conference organized by communications technology company Zoom. Notably, the billionaire had been invited to give a keynote address on AI, coinciding with the company’s launch of new AI-based innovations.
Munger’s Bitcoin Rant
When asked about his take on the world’s largest cryptocurrency, Munger responded, “Don’t get me started on Bitcoin. This is the stupidest investment I have ever seen.”
Now 99 years old, Munger has been a vocal opponent of cryptocurrencies and blockchain technologies for some time. In 2021, he famously compared Bitcoin to “rat poison” and likened it to a “venereal disease.” He also questioned the potential of digital gold to become a global means of payment.
In February 2022, Munger slammed the US government for not banning cryptocurrencies before praising China in July for its decision to ban cryptocurrencies and referred to them as “an investment in nothing.” On previous other occasions, he has also consistently criticized the rise of cryptocurrencies and their impact on the financial landscape, terming them as investments with no intrinsic value.
Munger’s criticism of Bitcoin and cryptocurrencies is shared by his long-time business partner, Warren Buffett. Previously, Buffett has referred to Bitcoin as a “gambling token” and expressed concerns about its impact on society.
Munger on AI
Meanwhile, at the conference, Munger also shared his thoughts on artificial intelligence (AI). However, while acknowledging the importance of AI breakthroughs, he cautioned against the excessive hype surrounding the technology.
He pointed out that AI has existed since the 1950s, stating, “We’ve always had artificial intelligence, where software creates more software. And, of course, that’s very useful, but we’ve had it for a long time.”
Munger’s scepticism about AI is not new. He has previously expressed doubts about the transformative potential of AI, stating in May this year that “old-fashioned intelligence works pretty well.” Despite recognizing the importance of AI, he has remained cautious about the excessive optimism surrounding its capabilities.
That said, the cryptocurrency market has experienced significant volatility and fluctuations and the year 2022 witnessed a widespread selloff, referred to as “Crypto Winter,” resulting in a substantial loss of market capitalization. While Bitcoin has recovered somewhat from its lowest point this year, its price is still a far cry from its all-time high.
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