Charles Munger: bitcoin is too volatile for a legal tender

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Berkshire Hathaway vice chairman Charles Munger called bitcoin an artificial gold substitute, too volatile to be used as a legal tender.

At the annual Daily Journal event hosted by Yahoo Finance, one attendee asked the vice chairman of the holding company Berkshire Hathaway, Charles Munger, what he considered the biggest competitive threat to US banks in the long term.

The question was about the potential technological impact of Amazon and Apple Pay, digital wallets and bitcoin. Munger replied that he did not know how the payment system would develop. However, in his opinion, Bitcoin is unlikely to become a global payment instrument, as it is an “artificial gold substitute” and is extremely volatile.

“Since I never buy gold, I will never buy bitcoin,” Munger said. “I recommend other people to follow my example. I really believe that a properly managed bank makes a great contribution to the development of civilization and that the central banks of the world will maintain control over the entire banking system and their own cash reserves. ”

During the nearly two-hour session, many questions were asked about BTC. When asked if his opinion on cryptocurrencies remained the same or if Munger plans to add cryptoassets to his portfolio of companies, he rejected such an opportunity.

“No, we will not follow Tesla to Bitcoin,” he said.

Recently, Microsoft co-founder Bill Gates said that Bitcoin consumes too much electricity.

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