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It's not the ideal way to measure BMI, But it is the easiest

 Obviously if you are an ultra health nut, it's going to be incorrect. But, if you're spending all this time on your health you likely know this. If you are an overweight person, and you want to use the argument "Those charts are wrong! It must be teh muscle" without actually measuring your Body fat a different way. You are delusional.

 It's never been exact, nor has it claimed to be exact. It's a good easy starting point for someone who thinks they might be overweight, or underweight to bring it up with the doctor, and afterwards create a diet, and exercise regiment. 

The best way is to be proactive and get your Body fat the most correct way. But people like to procrastinate.