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Charlie Munger compares Bitcoin to child trafficking, likes central banks

By on November 15, 2022 0

Berkshire Hathaway’s VP remains firmly skeptical of crypto in the wake of FTX’s collapse.

Having previously called Bitcoin “the rat poison” and “venereal diseaseCharlie Munger now likens the most valuable cryptocurrency to child trafficking.

“There are people who think they have to be in on every business that’s in vogue,” he said. CNBC Tuesday, while reflecting on high profile investors getting involved in the industry. “They don’t care if it’s child prostitution or bitcoin. I think it’s completely crazy.

The 98-year-old billionaire said seeing so many “reputable” people supporting crypto depresses and depresses him, and that they made a “huge mistake” in associating themselves with such “scumball promotions.”

Munger said that while the parties involved in FTX were “well-meaning”, they were blindsided by a mix of “fraud” and “delusion”.

One of the largest and most prestigious crypto exchanges in the world, FTX, filed for bankruptcy Friday after allegedly embezzlement client funds to support its sister company, Alameda Research. Following their collapse, the many sponsors and partners who have signed deals with FTX over the past few years are rushing to cut ties.

Ironically, many leading figures in the crypto community have argued that the fallout from FTX only reinforces the need for decentralized technologies like Bitcoin, which do not require centralized intermediaries to operate. Munger, however, makes no distinction between crypto itself or the industry giants surrounding it.

“Good ideas carried to miserable excess become bad ideas,” he said. “Nobody’s going to say, ‘I got some bullshit I want to sell you. They say, ‘It’s blockchain!’ »

Instead of crypto, the VP remains a fan of the legacy monetary system central banking model. “Overall, I like central bankers. All in all, I hate bitcoin promoters,” he said. said.

Two exceptions to this rule are Elon Musk and Tesla, despite their previous promotion and acceptance of Bitcoin. “I don’t equate Tesla with bitcoin,” he said. “Tesla has made real contributions to civilization.”

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