Berkshire Hathaway Vice Chairman Charlie Munger, Warren Buffett’s right-hand man, commented on the collapse of crypto exchange FTX, saying it was “partially due to fraud and party delusion.” Noting that “the country doesn’t need a good currency for kidnappers,” he insisted: “I like the existence of the Fed basically… I hate bitcoin promoters.” He also said that Tesla’s success was a “small miracle”.
Berkshire’s Charlie Munger on Bitcoin, FTX Crash, Fed, Tesla and Elon Musk
Charlie Munger, Warren Buffett’s longtime right-hand man and business partner, has made fresh comments on bitcoin and the demise of crypto exchange FTX.
Berkshire Hathaway vice chairman, 98, said: “It breaks my heart when in my country I see people who were once considered very prestigious who have helped keep these things alive.
This is a very, very bad thing. The country doesn’t need a good currency for kidnappers, etc.
He noted that what frustrates him is that some people think “they have to get into every lucrative transaction and they don’t care if it’s child prostitution or bitcoin.”
“If it’s hot, they want to be up there,” he continued. I think that’s completely crazy. Reputation is very helpful in your financial life and ruining your reputation by associating with scum and promotions for scum is a huge mistake.”
When asked about whether companies investing in FTX do any due diligence, Munger said:
You are seeing a lot of illusions. It’s part fraud and part illusion. That’s a bad combination. I don’t like scams or delusions and delusions can be more extreme than scams.
“No one is going to get into something new where every 12-year-old can become a billionaire or something,” he describes, adding that he just needs to create a coin, call it is the Munger coin and start trading it. “It was crazy, it lost its memory.”
Munger also said:
Basically, I like the existence of the Fed. I think in a world of fiat currencies, we need wise central banks… So in general, I like central banks, and in general, I hate bitcoin promoters.
The Berkshire Hathaway vice chairman has never been a fan of bitcoin or crypto. He previously called bitcoin “rat poison” and “contradictory for the sake of civilization.” He even compared cryptocurrencies to venereal disease. In July, I advise: “I just avoid it as if it were an open sewer, full of poisonous creatures. I completely avoid it and suggest everyone else follow my example.” Berkshire Hathaway CEO believes governments should ban bitcoin.
Munger also shared his views on Tesla and CEO Elon Musk. I said:
I’m really surprised that Tesla does so well, but I don’t equate Tesla with bitcoin.
“Tesla has made some real contributions to this civilization. Elon Musk has done some good things that others haven’t… We haven’t had a successful new car company in a long, long time, but what Tesla has done in the field. the auto business is a little miracle,” he remarked.
What do you think of Berkshire Vice Chairman Charlie Munger’s comments about bitcoin, the failure of FTX and Tesla? Let us know in the comments section below.
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