Charlie Munger Criticizes AI and Bitcoin

AI Hype and Munger’s Views

Artificial intelligence (AI) and blockchain technology are gaining momentum in various sectors of the global economy. However, Charlie Munger, the billionaire vice chairman of Berkshire Hathaway and close advisor to Warren Buffett, has expressed skepticism towards AI. During a recent conference, Munger stated that AI receives more attention than it deserves and that its potential is exaggerated. While Munger acknowledges the importance of AI breakthroughs, he remains cautious and doubts its unrealistic expectations.

Munger’s Criticisms of Bitcoin

Munger’s skepticism extends to cryptocurrencies, particularly Bitcoin. He has called it the stupidest investment he has ever seen and believes it will be worthless. Munger has compared Bitcoin to “rat poison” and urged the US government to ban it. Warren Buffett shares Munger’s skepticism, referring to Bitcoin as gambling. Other prominent figures, such as JPMorgan Chase CEO Jamie Dimon, have also dismissed cryptocurrencies.

A Different Perspective

Despite Munger and Buffett’s criticisms, not all investors agree with their evaluation of Bitcoin. MicroStrategy President Michael Saylor believes that critics like Munger should invest more time in studying Bitcoin to gain a better understanding of its operations. Former BlackRock CEOs Steven Schoenfeld and Martin Bednall are focusing on the future of Bitcoin exchange-traded funds (ETFs) in the United States, expecting their approval in the coming months. Supporters argue that the approval of Bitcoin ETFs could bring approximately $200 billion into the cryptocurrency market.

It is worth noting that both AI and cryptocurrencies continue to attract interest from major firms on Wall Street, despite Munger’s skepticism.