Charlie Munger, known as Warren Buffett’s right-hand man, criticized Bitcoin again last week, stating that the majority of investments in cryptocurrencies will fall to zero. His speeches were delivered on Zoomtopia, an online Zoom event.
The vice president of Berkshire Hathaway also took the opportunity to criticize the Artificial Intelligence (AI) sector. According to the 99-year-old investor, there is a lot of exaggeration on this subject.
Meanwhile, his company’s portfolio remains focused on Apple shares, followed by other major US brands such as Bank America, Coca-Cola and Heinz.
Warren Buffett’s right-hand man remains skeptical about Bitcoin
Berkshire Hathaway Vice Chairman Charlie Munger has probably known about Bitcoin longer than any of us, but he never liked the idea. Earlier this year, he argued that the US should ban Bitcoin and call the cryptocurrency a game of chance.
On other occasions, the investor has also called the sector an “open sewer” and “cryptocurrencies”, once again defending state currencies as the only possible ones in the economy.
While participating in a Zoom event last week, Munger again expressed his lack of interest in Bitcoin, this time warning of a possible devaluation of the market.
“Don’t tell me about bitcoins – that was the dumbest investment I’ve ever seen. Most of these investments go to zero.”
His thinking is the same as that of Warren Buffett. In short, the pair of investors do not believe in Bitcoin because it does not generate dividends, but the criticism goes further, mainly because of Bitcoin’s pseudo-anonymity and its competition with the US dollar.
Legendary investor is also concerned about the Artificial Intelligence (AI) sector.
Besides cryptocurrencies, another technology that is being talked about throughout the market is artificial intelligence. However, Charlie Munger is also not convinced that the sector is a bubble.
“I think it’s getting a lot of attention and I think it’s probably getting more than it deserves.”
Munger explains his thinking, noting that artificial intelligence is “very useful”but this technology “It’s been around for a long time”since the 1950s. Another investor concerned about AI is Arthur Hayes, who notes that many of these companies will simply burn through the money raised.
Today, more than half of Berkshire Hathaway’s portfolio is made up of Apple stock, worth $177 billion. Rounding out the five largest exhibits are shares of Bank America, American Express, Coca-Cola and Chevron.
While it is very hard to believe that Buffett and Munger have cryptocurrencies in their portfolios, many investors remember that Berkshire Hathaway has investments in Nubank, a Brazilian bank that offers various crypto products to its customers.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
