© Reuters. Agree with Charlie Munger That Bitcoin is “Disgusting”? Then Avoid These 5 Stocks
In response to the hype surrounding popular cryptocurrencies, especially bitcoin, Berkshire’s vice chairman Charlie Munger calls bitcoin “disgusting and contrary to the interests of civilization.” Irrespective of one’s agreement or disagreement with this view, we think it could be wise to avoid fundamentally weak cryptocurrency stocks Coinbase (COIN), Marathon (MARA), Riot (RIOT), Silvergate (SI), and BitDigital (BTBT). Please read on.Cryptocurrencies have taken the world by storm over the past few years. , the largest cryptocurrency by market capitalization, hit an all-time high of nearly $64,800 on April 14. However, it plunged below $50,000 later in the month following speculation that the United States Treasury may crackdown on money laundering executed through digital currencies.
So, it doesn’t come as a surprise that Berkshire Hathaway (NYSE:) Inc.’s (BRK.A) vice chairman Charlie Munger, who has long criticized bitcoin for its extreme volatility and lack of regulation, called it “disgusting and contrary to the interests of civilization” at BRK.A’s annual shareholder meeting on May 1. Also, on April 30, Turkey’s central bank banned the use of cryptocurrencies as a form of payment, and India is expected to propose a law to ban cryptocurrencies and impose a fine for anyone trading or holding it.
Irrespective of one’s view on the prospects of cryptocurrencies, we think investors should stay away from fundamentally weak cryptocurrency stocks Coinbase Global, Inc. (COIN), Marathon Digital Holdings, Inc. (MARA), Riot Blockchain, Inc. (NASDAQ:), Silvergate Capital Corporation (NYSE:), and Bit Digital, Inc. (BTBT).
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