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Charlie Munger, vice chairman of Berkshire Hathaway and longtime business partner of Warren Buffett, dismissed the surge in Tesla’s share price and a historic rally in Bitcoin cryptocurrency.
In an interview at the Annual Shareholders’ Meeting in the DailyJournal, Munger was asked if he thought he was crazy that Bitcoin hit $ 50,000, or if Tesla’s electric cars were worth $ 1 trillion, and he joked, “I don’t know which one is worse.” .com.
Tesla shares rose 743% last year, although they are currently down around 3% for 2021.
Its market value is approximately $ 689 billion. Bitcoin continued to rise to over $ 50,000 over the past week after Tesla announced it bought $ 1.5 billion worth of cryptocurrency.
Munger was asked about the biggest threat to banking services, and if Bitcoin or digital wallets like Apple Pay and Square threaten traditional services, he said: “I don’t think I know what the future of banking is. , nor know how the payment system will evolve. “
But one big investor expressed his belief that a properly run bank is a major contributor to civilization and that the world’s central banks like to control their banking system and their own financial supplies.
As a result, according to Munger, Bitcoin will end up facing the problem of extreme volatility, so it does not serve well as a medium of exchange, but rather is “a kind of artificial alternative to gold, and since I didn’t buy any gold, I never buy Bitcoin. ”
Munger recommended others to follow his practice.
During the same event, Munger also issued a serious warning to novice investors who he says are being lured into a trading bubble through apps like Robinhood and discussion platforms for young Wall Street traders.
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