Bitcoin and Tesla according to Charlie Munger
The usual financial mogul takes a break to express his thoughts on Bitcoin and Tesla.
Charlie Munger is Warren Buffett’s longtime business partner and at the ripe old age of 98 is vice chairman of the Berkshire Hathaway Holding Company.
Historically, the manager and investor have never been very friendly with digital currencies, especially Bitcoin, and have repeatedly told investors to exit the investment.
The last one failure of FTX has certainly not softened the businessman’s positions, which have actually hardened behind the statements:
“It is a fraud and a party delusion. The country did not need a currency that was good for the kidnappers. Basically, I like the existence of the Fed … I hate bitcoin promoters.”
The tycoon also dwelt on Tesla, calling the company’s success downright miraculous.
Behind the success of the American company is the fact that it has brought value to America and the industry.
Charlie Munger speaks out: Bitcoin is evil, while Tesla is a miracle
Historically Charlie Mungerunlike Warren Buffett who has been more volatile in opinions, has always taken a very critical stance on Bitcoin and cryptocurrencies in general.
To quote his latest statement after this interview, he had been unequivocal on the subject, going so far as to say:
“I avoid it like it’s an open sewer full of harmful organisms. I avoid and recommend that everyone else follow my example.”
With such statements from such an influential investor, there should have been a rush to sell, on a larger scale than what happened with FTX, and instead BTC remains firmly at the helm of crypto and paradoxically precisely because of its solid foundation it is here to stay and investors appreciate it regardless of various failures on certain platforms.
In this interview, the tycoon returned to the subject by drawing parallels with the roaring years that saw him at the forefront of finance, saying:
“It pains me that in my country I see people who were once considered very respectable people helping these things to exist.”
Letting out a vein of bitterness and disappointment towards some of his colleagues who have been “imprisoned” by Bitcoin:
“This is a very bad thing. The country didn’t need a currency that was good for kidnappers and so on. It depresses me that some people think they have to participate in every deal that’s hot and they don’t care if it’s child prostitution or Bitcoin . If it’s hot, they’ll be there. I think it’s absolutely crazy. Reputation is very useful in financial life, and to ruin your reputation by joining scumballs and scumball campaigns is a big mistake.”
When the subject of FTX came up, regarding the level of control and security of the exchange, Charlie Munger did not use leniency in expressing astonishment that so many people have put money into the hands of this company.
“It is part fraud and part delusion. It’s a very bad combination. I like neither fraud nor delusions and delusions are perhaps more extreme than fraud. Nobody wants to be in a new thing like any 12-year-old can be a billionaire or something.”
Munger does not like the fact that a company can create a currency from scratch using algorithms, programming and due controls, and he calls this possibility insane.
The vice chairman of Berkshire Hathaway categorically rejects this practice and emphasizes the role of the Fed and regulators in addition to the role of central bankers.
He expressed himself on the subject in the following way:
“Basically I like the existence of the Fed. I think in a world of fiat currencies we need wise central banks… So generally I like central bankers and generally I hate bitcoin promoters.”
Tesla
The EV company pleases the investor who sees it as a more unique than rare event that has breathed new life into the auto industry and brought the world’s attention back to an American automaker, just as Henry Ford did in his time.
The work done by Elon Musk is hugely important to industry because it brings new technology as well as jobs and raises the potential of the United States, which leads the way in technology on the planet.
Munger said he was surprised by Tesla’s performance in both product realization and growth.
The company according to the tycoon is in no way comparable or related to Bitcoin as it is based on the success that comes from unprecedented studies and work, mainly from value.
“Tesla has made real contributions to this civilization. Elon Musk did great things that other people couldn’t… We haven’t had a successful new car company in a long, long time, but what Tesla has done in the auto industry is a small miracle.”
Tesla has brought back the American muscle car dream with a new key and a new propulsion system.
Cars are still speeding down Route 66 instead of through the crowded streets of New York City, but now they’re doing it electrically, and this trend is destined not to stop, but to grow.
Not only has Elon Musk been able to improve the performance achieved by gasoline-powered cars, but he has reinvented green mobility by focusing on zero impact and reasonable mobility with ADAS systems and autonomous driving and safety braking in case of driver distraction.
