What you are listing is just scratching the surface of what bitcoin really is, you are just doing what everyone says when the prices go down. It is alright to admit that bitcoin is not in your circle of competence, it is complicated. Better to not pretend that you know it all because when the time comes that someone who genuinely wants to know something about bitcoin and you have no answer, you will only embarrass yourself, I am still learning a lot about bitcoin but I still consider bitcoin not part of my circle.

Well, Buffet and Munger are not gods who have the absolute truth in everything they say. Let's remember what they think about Bitcoin. So, I would relativize what they say.  Those who have saved and invested in index funds over the last 50 years have done well, and they didn't need to know much about investing or index funds to do so. On the other hand, we can see fund managers cherry-picking and failing miserably in their decisions, performing worse than index funds. So, although as a general idea I agree that you have to be knowledgeable about what you invest in, I don't consider it an absolute truth either.

You better your prospect/chance investing in what you understand, but it won't be complete just this way, everyone should have many things they are yet to understand, I once didn't understand Bitcoin, but when I heard of it I found it exciting, so while you shouldn't invest those things, you can still do the extra to understand them, and then it's up to you to invest in them.

sensible investing is about knowing what you are investing in
if you dont have time to learn. then stay away if you dont know the industry

but dont fear learning something new
if your into IT. you do not have to stick with that industry for the rest of your life
be confident to learn new things. just be confident you have learned enough to understand it before investing

some IT nerds know programming. but have no clue about shares, assets, investing. but think just because they know programming it will get them huge riches in bitcoin.
many have lost alot this way.

its not to say nerds should not trade bitcoin. its just to say learn more about it beyond your coding speciality. learn about assets, trading and risk management

Investing in your circle of competence is definitely the way to go when talking about things like stocks. As for bitcoin? While I still think that people should invest in bitcoin only if they really understand it, up to what extent should they understand it? For now as we're quite early, I think people should have high understanding of it. But as time goes and when(and if) Bitcoin becomes the de-facto store-of-value for the masses? I think the minimum that people should know is Bitcoin's basic characteristics(finite, decentralized, self-custody, etc) and how to secure it on a non-custodial wallet, and probably everything else is just extra.

But that would mean that you know the in-depth theories and applications that bitcoin can be used if bitcoin is in your circle of competence. In my opinion, having a subject in your circle of competence is a very difficult thing to achieve, you know how those people who take masters and doctorate on their chosen major, that one can be considered circle of competence, just because you traded with bitcoin for a long time doesn't mean that you already know everything there is to know about it, maybe if you are one of the bitcoin core developer then I think you can consider bitcoin as part of your circle.

I wonder what level of understanding of Bitcoin to the recent group of large scale
investors have? They see it as a store of wealth/value but do they know the function of
mining and how new Bitcoins are created or how to actually take custody of their
coins for example? im guessing they may only know the very basics.

That's why I stick to crypto and avoid the stock markets

Because I want to stick to what I know and what I understand, plus, here are the current hype and the money...

I have studied Bitcoin for years, but can I say I understand the code? I'm not a programmer so I don't, unless I learn C++, I never will. I understand the fundamentals and digging deeper, initially made me feel it has great potential, but lately I regret that I spent so much time. Bitcoin is code and as code it has mistakes. One of them is that it will never be changed fundamentally. This is not always a wrong approach, but it is not perfect either. Changes will be needed. The new technologies that will dominate the software market are already here. AI is just one of them. What will Bitcoin do is probably stick to this code it has today and never move from it. This is bad for technology, even if it is about money. Not developing and not moving forward and implementing changes means nobody wants to take any risk. It can't go on for another decade like this.