Charlie Munger, a close friend of Mr. Buffett and vice chairman of Berkshire Hathaway, answered investors' questions at the shareholders' meeting of his newspaper company, daily journal, on Wednesday.Asked whether "bitcoin is $50000" or "Tesla's fully diluted corporate value is $1 trillion," Munger said, "I met (18th century British writer) Samuel Johnson Johnson once had the same difficulty when he encountered similar problems. He once said: "I can't decide the priority between fleas and lice." and I have the same view on the above two aspects. I don't know which is worse
Tesla's share price surged 743% last year, though it has fallen about 3% so far this year. Its market value is now about $689 billion. Bitcoin has soared to more than $50000 in the past week after Tesla announced its purchase of $1.5 billion worth of bitcoin.
Munger was also asked what was the biggest threat to the banking industry, bitcoin or digital wallets like apple pay and square.
"I don't think I know what the future of banking is going to be and how the payment system is going to develop," he said. I do think that a well run bank has made a great contribution to civilization. Central banks all over the world like to control their own banking system and their own money supply. "
"So I don't think bitcoin will become a global medium of trade. Its volatility is too big to be a good medium for trading. It's actually a man-made substitute for gold. And since I never buy any gold, I never buy any bitcoin. "
Munger advised others to do the same.
Munger said that the speculation of bitcoin is just like Oscar Wilde's description of the British fox hunting - the purpose of the unattainable by the unspeakable - a group of speechless people (Wilde derogated to the British) chasing a group of swallowable prey (no one will eat fox meat).