Known for his extremely blunt opinions and factual statements, Charlie Munger has never been one to mince words, whether it’s equating child prostitution with bitcoin, portraying crypto as “shit and calling most cryptocurrency promoters “scumballs.” In a recent interview with CNBC, Berkshire Hathaway Vice President Charlie Munger shared his thoughts on the cryptocurrency updates that have been making headlines lately.
Speaking about the recent disruption in the crypto market, Munger blithely stated that when it comes to “good deals”, a certain section of the population has no scruples, giving up their morals to jump on a new trend. “There are people who think they have to be on every case that’s hot and they don’t care if it’s child prostitution or bitcoin. If it’s hot, they want in on it,” the Berkshire Hathaway vice president said.
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The interview contained thinly veiled commentary on the latest developments at FTX and FTX founder Sam Bankman-Fried. “But these people are promoting things like – they are promoting the decline of civilization,” the 98-year-old executive said. Munger’s conversation with CNBC comes a week after crypto exchange FTX and its native token, FTT, crashed, wiping out dozens of investors’ wealth, as people rushed to leave the platform. FTX recently filed for bankruptcy, stoking fears for the future of the crypto industry itself.
Not only is he against the crypto industry overall, but Munger also believes that people lose their reputation in an effort to increase their wealth by any means possible. “Reputation is very useful in financial life and destroying your reputation by associating yourself with bastards and promotions of bastards is a huge mistake,” he added. America and the world “didn’t need a currency that was good for kidnappers and so on.”
Asked about the regulation of the crypto industry, Munger said authorities were “confused by it all” and that they were “a bunch of old people who have been doing things a certain way for a long time now.” . For Munger, even though the crypto industry was booming and new, there should have been significant regulations and the way the industry has unfolded is “one big joke.” “People think it’s a real asset. This is not a real asset,” he added. Much like his longtime friend and associate, Berkshire Hathaway CEO Warren Buffett, Munger is among those who believe the crypto industry is rife with duplicity, calling it “part fraud and part fraud.” ‘illusion”.
As a seasoned investor, Munger has always appreciated the advent of new technologies, developments and innovation. He said, “I like the speculative assets of top venture capitalists where they give us a new company like Zoom or a new company like Stripe or something. And so I love the new businesses they’re creating and I’m glad we came up with new things. However, his appreciation of novelty draws the line at cryptocurrency, as it is an “illusion” that is washed away. He warns that the industry can cause massive damage when it falls, leading to a full-scale recession.
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