Berkshire Hathaway rules out investing in bitcoin

Vice Chairman of Berkshire Hathaway’s board, Charlie Munger, said the company would not buy bitcoin because of its high volatility.

During an interview at Daily Journal Corporation’s annual shareholders’ meeting, the top executive was asked what constitutes a bigger folly: Tesla’s $1 trillion market capitalisation or digital gold at $50,000.

“I can’t determine which is worse between a flea and a louse,” Munger replied, alluding to the writer Samuel Johnson.

Munger called the banking system “a great contribution to humanity” and questioned Bitcoin’s ability to become a global means of payment.

“It’s too volatile to serve as a means of payment, and it’s an artificial substitute for gold. Since I don’t buy gold, I will never buy Bitcoin. No, we won’t follow Tesla,” the executive said.

Earlier, Justin Sun, the CEO of the Tron Foundation, paid a record $4.5 million for a charity dinner with Warren Buffett in 2020, at which he gave him 1 BTC. The legendary investor later reiterated his view that cryptocurrencies are worthless but said he valued the meeting.

Back in 2018, Munger called Bitcoin “a toxic poison” and urged governments to “crush it” through regulation.

In 2019, the 95-year-old top executive compared cryptocurrency investors to followers of Judas.

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