Munger of Berkshire Hathaway said, “I think I should say modestly that the whole damn creation (Bitcoin) is disgusting and contradictory to the interests of humanity.”
Charlie Munger, Warren Buffett’s long-time friend and business associate, as well as Berkshire Hathaway Vice Chairman, recently criticised Elon Musk’s electric vehicle company Tesla and the Bitcoin price. Munger took an analogy from the 18th century English writer Samuel Johnson’s quotation on determining the “order of precedence” between a flea and a louse, saying he doesn’t know which is worse. According to CoinDesk, Bitcoin’s price was hovering around $57,700 at the time of filing this article, while Tesla’s market cap was $709 billion.
In an interview at the Daily Journal’s annual shareholder meeting, Munger said, “I have the same trouble that Samuel Johnson had when he was asked a similar question.” “He (Johnson) said, ‘I can’t determine the order of precedence between a flea and a louse,’ and I agree with him on that. I’m not sure which is the worst.” Munger was reacting to a query on which was crazier: Bitcoin hitting $50,000 or Tesla reaching a $1 trillion completely diluted enterprise value. This year’s shareholder meeting took place in February.“Bitcoin makes me think of Oscar Wilde’s remark about fox hunting. He said it was the unspeakable’s search of the uneatable,” Munger said later in the interview.
Munger’s aversion to Bitcoin was evident during a question-and-answer session at Berkshire’s annual shareholder meeting on Saturday. “I don’t welcome a currency that’s so useful to kidnappers and extortionists and so on,” CNBC wrote. “Neither do I like handing over your extra billions of dollars to someone who just made up a new financial commodity out of thin air.” “I believe I should state modestly that the whole damn creation is disgusting and contradictory to civilization’s interests.”
Last year, during the Daily Journal’s annual meeting in February, Munger said, “I would never buy (Tesla), and I would never sell it short… Never underestimate a man who exaggerates his own abilities. I think Elon Musk is odd, and while he might overestimate himself, he isn’t always wrong,” Munger had said. Tesla’s market capitalization has increased by more than 350% in the last year, from $152 billion on May 4, 2020, to the current amount of nearly $900 million in January of this year.