In May 2019, Berkshire Hathaway Chairman and CEO Warren Buffett (left) and Vice Chairman Charlie Munger speak with reporters prior to Berkshire Hathaway’s annual shareholders’ meeting. 〈Photo = AP Yonhap News〉Warren Buffett’s business partner and vice president of Berkshire Hathaway, Charlie Munger, assessed the recent steep rise of Bitcoin and Tesla stocks.
According to the US economic media CNBC on the 24th of local time, Munger said at the Daily Journal’s shareholders’ meeting that’Which do you think is more unusual: Bitcoin reaching 50,000 dollars or Tesla market cap reaching 1 trillion dollars?’ I got a question.
Bitcoin fell to about $4,900 per piece as of March last year, and then in a year or so, its price soared to about $58,000 (about 1,080%).
Tesla’s share price surged 743% over the past year to reach a market cap of $68.9 billion (about 76.36 trillion won).
Over the past year, both Bitcoin and Tesla have seen tremendous gains.
〈Photo = Reuters Yonhap News〉“It’s hard to answer,” Munger said, saying, “We can’t prioritize fleas and teeth.”
He added, “I don’t know which one is worse.”
We avoided the definite answer, but both Bitcoin and Tesla gave negative reviews.
Also, Munger said, “I don’t think Bitcoin will be the world’s trading vehicle.”
The biggest reason is volatility.
As Bitcoin’s price fluctuates from time to time, Munger predicts that even’digital gold’ is difficult to use as a means of trading.
“I’ll never buy bitcoin,” said Munger, and “chase after the inedible.”