The American billionaire investor Charlie Munger reiterated his negative tone on the crypto sector, saying bitcoin stimulates child prostitution, kidnappings, and other criminal affairs.
He also argued that the FTX crash resulted from a “bad combination” between fraud and delusion.
Munger’s Latest Attack
Charlie Munger – Vice Chairman of Berkshire Hathaway and Warren Buffett’s right hand – is undoubtedly among the biggest critics of the digital asset industry. In a recent interview for CNBC, he doubled down on his stance, arguing that bitcoin is suitable for criminals and harmful to the USA:
“This is a very, very bad thing. The country did not need a currency that was good for kidnappers. There are people who think they’ve got to be on every deal that’s hot. I think that’s totally crazy. They don’t care whether it’s child prostitution or bitcoin.”
Numerous sources, though, have estimated that cash remains the most employed financial instrument in illicit operations, such as prostitution, drug deals, extortion, and many others. Bitcoin, on the other hand, is a highly unsuitable tool for criminals because of its transparent blockchain technology.
The 98-year-old American gave his two cents on the recent collapse of the crypto exchange FTX, too. In his view, there are many scammers in the industry, but most participants do not see the facts because they are delusional:
“Good ideas, carried to wretched excess, become bad ideas. Nobody’s gonna say I got some s*** that I want to sell you. They say – it’s blockchain,” Munger alerted.
His Previous Warnings
The billionaire claimed in 2021 that bitcoin will never become “the medium of exchange for the world.” He described the primary cryptocurrency as the “artificial substitute for gold,” which sounded like the only positive thing he has ever said about the asset. However, he outlined that “since I never buy any gold, I never buy any bitcoin.”
Munger went further in December 2021, wishing digital assets were never invented. He also supported China’s decision to impose a total ban on the asset class, regretting that his homeland had “made the wrong decision.”
He continued his bashing manifesto this year, maintaining that delving into bitcoin and altcoins is like “investments in nothing” that one would need to be “almost insane” to consider.
“I just avoid it as if it were an open sewer, full of malicious organisms. I just totally avoid and recommend everyone else follow my example,” he concluded.
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