‘Stupid and evil’. Warren Buffet and Charlie Munger unload on Bitcoin

An angry customer yells at his mobile phone, indicating trouble for an ASX company

An angry customer yells at his mobile phone, indicating trouble for an ASX company

Bitcoin (CRYPTO: BTC) represents different things to different people.

Launched way back in January 2009 by a person or people going under the name Satoshi Nakamoto, the world’s first crypto is sometimes lauded as a financial equaliser. One whose decentralised nature takes control from established financial institutions and is free from government manipulation.

But not everyone agrees with this rosy take.

Just say no

Over the weekend legendary investor Warren Buffett and his long-time right hand man Charlie Munger hosted Berkshire Hathaway’s annual shareholder meeting.

With cryptos gaining mainstream traction across the globe, their opinions on Bitcoin came up.

As Bloomberg reports, Buffett said he’s not sure what to do with the likes of Bitcoin and other cryptos.  According to the Oracle of Omaha, crypto assets aren’t productive like real estate or farmland.

Munger, well-known for his disdain of cryptos, said, “When you have your own retirement account and your friendly adviser suggests you put all your money into Bitcoin, just say no.”

“In my life I try and avoid things that are stupid, and evil and make me look bad in comparison with somebody else. Bitcoin does all three,” he added.

If not cryptos then what?

Buffett and Munger couldn’t have been clearer on their dislike of Bitcoin.

But with resurgent inflation, rather than speculating on stocks like you’re in a casino or investing in digital assets that you may not understand, Buffett recommended (quoted by Bloomberg):

The best investment by far is anything that develops yourself. If you’re the one they pick out to do any particular activity – sing or play baseball or be their lawyer, whatever it may be – whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you.

How has Bitcoin been tracking?

Crypto investors would have done well to take Warren Buffett’s advice this year.

So far in 2022, the Bitcoin price is down 20%, according to data from CoinMarketCap.

The world’s leading crypto is currently down 45% from its 10 November all-time highs of US$68,790.

The post ‘Stupid and evil’. Warren Buffet and Charlie Munger unload on Bitcoin appeared first on The Motley Fool Australia.

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More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/pliSD1I

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