In an interview with Financial Times, Charlie Munger, the billionaire vice chairman of Berkshire Hathaway, called Bitcoin “a real bubble”
Munger said that while he doesn’t own any Bitcoin, his son does, “to my shame.” He went on to say that he thinks the cryptocurrency is in a “real bubble,” and that people are buying it to make money, rather than using it as a means of exchange.
While acknowledging that blockchain technology is “brilliant,” Munger said he doesn’t understand why Bitcoin should be worth anything. “It doesn’t produce anything.
You can stare at it all day and no little Bitcoins come out,” he said. .
NOTE: WARNING: This article discusses the views of Charlie Munger on Bitcoin. As an investor, Mr. Munger has a personal opinion on the matter that may not be reflective of investing advice. Investing in cryptocurrencies such as Bitcoin involves a high degree of risk and potential loss of principal, and should only be done with caution and after thorough research.
Munger’s comments come as the price of Bitcoin has surged to new highs in recent weeks. The cryptocurrency was trading above $11,000 on Wednesday, up from around $1,000 at the start of the year.
The rise in price has been driven by a combination of factors, including increased interest from mainstream investors, and a dwindling supply of new Bitcoin as more is mined and held by long-term investors.
Munger’s comments echo those of Warren Buffett, who has also called Bitcoin a “mirage” and compared it to gold. “You can stare at it all day, and no little Bitcoins come out,” Buffett said in 2014.
While Munger and Buffett may not be fans of Bitcoin, there are plenty of other investors who see the potential in the cryptocurrency. Billionaire hedge fund manager Mike Novogratz has predicted that Bitcoin could reach $40,000 by the end of 2018, while Goldman Sachs is reportedly considering launching a trading desk for cryptocurrencies.
4 Related Question Answers Found
In 1867, Karl Marx published the first volume of Das Kapital, his magnum opus on political economy. In it, Marx laid out his theory of “capitalism”—a system of economic production characterized by private ownership of the means of production and the exploitation of labor power for profit. For Marx, capitalism was a dynamic and contradictory system that was both the source of great wealth and poverty, innovation and exploitation.
Bitcoin, the decentralized digital currency, has been gaining popularity and media attention since its inception in 2009. But what do economists think about Bitcoin
Generally, economists are skeptical of Bitcoin and other cryptocurrencies. They tend to view them as speculative assets rather than true currencies.
J.P. Morgan Chase & Co. (JPM) CEO Jamie Dimon said he regretted calling bitcoin a “fraud.”.
“The blockchain is real. You can have crypto yen and dollars and stuff like that,” Dimon said at the New York Times DealBook conference on Wednesday. ” ICOs .
In 2017, JPMorgan Chase CEO Jamie Dimon called bitcoin a “fraud” and said he would fire any employee trading it for being “stupid.” But the bank he leads is now developing its own cryptocurrency. JPMorgan is set to launch a digital coin called JPM Coin later this year, becoming the first major U.S. bank to develop its own cryptocurrency.
