Charlie Munger Takes On Elon Musk and Bitcoin
Charlie Munger was recently interviewed by Andy Serwer, Editor in Chief Yahoo Finance about various topics ranging from Donald Trump to bitcoin. The outspoken vice chairman of Berkshire Hathaway was in awe of Elon Musk’s brilliance and disregarded bitcoin of any value. He was interviewed in Omaha, Nebraska after the annual meeting of the company. He was also happy that the US has a trade deficit with China.
The interview was taken hours after Elon Musk, CEO Tesla, trolled Berkshire hatchway on Twitter as he wrote, “I’m starting a candy company & it’s going to be amazing.” The longstanding partner of Warren Buffett called Musk “bold and brilliant” but also said that he was not sure if his ventures would succeed.
Munger said, “It’s already created more significance than anybody had predicted. Its founder is bold and brilliant, and he swings for the fences. People like that get some remarkable results. Sometimes they get some quick failures. I haven’t the faintest idea how Elon Musk will turn out, but he has a considerable chance of success and a considerable chance of failure. He seems to like it that way.”
However, Munger claimed that he did not hear about the twitter thing and called it “wise-assery” and cannot criticize for doing it.
In regard to tariffs, Munger replied, “I wouldn’t want entire U.S. steel industry to move off-shore. [But] I have an attitude that’s entirely different from our president’s. I’m glad we have a big trade deficit with China. “It enabled them to get out of poverty and obscurity. I welcome the Chinese to the group of advanced nations. I like what’s happened.”
He was not confident if Berkshire would be buying any big Chinese company. He added, “I think what is likely is that we will be invited to buy part of some great Chinese company because they like the good company.”
On the other hand, Munger completely shattered the very idea of digital currencies especially bitcoin. On the first go, he complimented the “computer science” used for the creation of bitcoin as a great achievement of the human mind. He said that developers created a product whose creation is really hard but not impossible. He further called it an “artificial speculative medium” as people are able to sell bitcoin at a higher value without it having an original value to back it up. Munger acknowledged bitcoin as “anti-social, stupid and immoral.”
He further compared the creation of bitcoin with freshly harvested baby brains and asked Serwer if could ever use them? He noted, “To me, bitcoin is almost as bad.” Being as outspoken as he is, Munger regarded bitcoin as a combination of dementia and immortality and disgraced the people who have been supporting the virtual currency. According to him, one must avoid doing certain things in life and bitcoin trading and marketing are one of them.
Experts in the crypto space speculate that it will surpass the $20,000 mark by the end of the year and might even go higher in the coming years. It is a matter of time we would be able to come up to a conclusive decision over the most prominent digital currency.