In a conference on Friday, Berkshire Vice Chairman Charlie Munger stated that the crypto market is excessively overvalued.
Munger stated at the conference that the present financial and market situation is “crazier” than it was in the early 2000s, when the dot-com bubble burst and investors lost a lot of money.
Munger noted at the Sohn conference in Sydney that the current financial era is even crazy than the dot-com era, when regular companies were deploying web technologies excessively to attract more investors looking to put their money in a quickly rising industry.
Munger then moved on to the cryptocurrency industry, saying that he wishes crypto didn’t exist in general and praising the Chinese government for “banning” the usage of digital assets—a reference to a big cryptocurrency crackdown in China in the middle of the year.
I wish they’d [cryptocurrencies] never been invented. And again I admire the Chinese, I think they made the correct decision, which was to simply ban them.
Berkshire’s venture capitalist stated that English-speaking culture made a mistake in supporting the technology’s continuing development, and that he, as an investor, will not participate in the expanding cryptocurrency market.
Traditional financial indexes, which are now in a robust rise, are far exceeding Bitcoin. The S&P 500 index has increased by more than 100 percent since the outbreak, whereas Bitcoin is currently trading at an 800 percent profit for the same period.
