American philanthropist Charlie Munger, who is a vice chairman of Berkshire Hathaway and a regular critic of crypto-currencies, has revealed his opinion regarding the FTX collapse. On this occasion, Charlie Munger issued a strong criticism of crypto-currencies, claiming that they are a pernicious mix of deception and illusion.
Charlie Munger against crypto-currencies
In an interview with CNBC, Charlie Munger compared crypto-currencies to child prostitution and noted that “it’s a very, very bad thing“. The country did not need a currency that was good for kidnappers.”
“There are people who think they have to be in every business that’s trendy. I think that’s completely crazy. They don’t care if it’s child prostitution or bitcoin.”
Similarly, Charlie Munger said that crypto-currencies are in part a combination of fraud and deception. “You see a lot of deception. Part fraud and part deception. It’s a bad combination“, he stressed.
In a similar vein, the vice chairman of Berkshire Hathaway condemned the idea that someone could create a new token that could instantly turn a 12-year-old into a billionaire.
Thus, Warren Buffett’s right-hand man blamed the government for not banning crypto-currencies sooner and letting things get out of hand.
Notably, Charlie Munger’s remarks come after a traumatic week for crypto-currencies. This is after a drop in the value of FTX’s FTT coin caused the stock market to crash and completely collapse.
The crypto-currency market in the midst of a crisis
Market turmoil over the past week has caused prices of a variety of digital currencies to hit new lows.
Indeed, the value of bitcoin (BTC), the world’s largest crypto-currency, has fallen nearly 65 percent since the beginning of the year and traded for a few minutes on Sunday, Nov. 13, at $15,970, a new 2022 low.