Wednesday, February 24, 2021
Charlie Munger doesn’t know what’s worse: Tesla at $1 trillion or bitcoin at $50,000
I do. It's Bitcoin.
Tesla is probably the most overpriced stock out there. But Tesla is real. Tesla is an actual company with assets, employees and manufactured products. They make electric cars and other interesting things. Tesla has intrinsic value. Its stock may go down in value. It probably should. But it's not going to zero.
Bitcoin is a fantasy, a shadow, a technological myth. It's not real. It has no intrinsic value or pragmatic function. You cannot build anything with a Bitcoin. It does not conduct electricity. You can't cook with it. You can't make jewelry or dental work with it. You cannot put a Bitcoin in my hand. I cannot take possession of a bag full of Bitcoin and lock it in my safe deposit box at the bank or bury it in my backyard. It pays no dividend or yield. As a currency it is not backed or recognized by any government and is incredibly volatile. Its brief history is full of shady characters and contains lots of unpleasant words and phrases, like money laundering, gangsters, drug trafficking, tax evasion and so on.
Bitcoin is a racket.
It reminds me of some clever fellow back in the 1970s who made a fortune by selling... pet rocks. The difference between Bitcoin and the pet rocks, is that back in the day if you sent this man a check or money order, you actually got a rock in return.
Anyway, here is the story.