Charlie Munger: “Bitcoin, Silicon Valley Are Bubbles”
Berkshire (NYSE:BRK.A) Vice Chairman Charlie Munger, 94 anni, warned savvy investors that he thinks Silicon Valley’s VC (venture-capital) funding and bitcoin are bubbles to avoid.
“Yeah sure on Bitcoin and venture capital, too,” Mr. Munger replied when asked if he thought the controversial digital currency was a bubble.
Currently, Bitcoin is trading at: 14,304.2051, +117.19, +0.83%, as of 8:37p GMT, the market is open.
Mr. Munger, who turned 94 on New Year’s Day, said there was “too much money” in venture capital, and he compared the current environment to the dot-com bubble in 2000.
“Bitcoin and the other cryptocurrencies are also bubbles,” he added. Investors “are excited because things are going up at the moment and it sounds vaguely modern. … But I’m not excited,” he said.
Last month, Mr. Munger warned that the controversial digital currency Bitcoin is “total insanity,” and to avoid it “like the plague.”
Mr. Munger made the comments on cryptocurrencies at a University of Michigan’s Ross School of Business event.
“I think it is perfectly asinine to even pause to think about them,” he said. “It’s bad people, crazy bubble, bad idea, luring people into the concept of easy wealth without much insight or work,” he said. That’s the last thing on earth you should think about,” Mr. Munger said.
“There’s just a whole lot of things that aren’t going to work for you. Figure out what they are and avoid them like the plague. And one of them is bitcoin. … It is total insanity,” Munger added.
For his part, Berkshire Hathaway’s Warren Buffett said Wednesday he will never invest in cryptocurrencies. “I can say almost with certainty that cryptocurrencies will come to a bad end,” Mr. Buffett said in an interview.
Mr. Munger also addressed succession at the conglomerate, saying shareholders probably have “7 or more good years coming out of Warren.”
Bitcoin has taken the investing world by storm, surging to a high of more than $19,000 and created a divide on Wall Street about whether it is a legitimate financial instrument.