American philanthropist Charlie Munger, who is vice chairman of Berkshire Hathaway and a regular critic of cryptocurrencies, has revealed his opinion regarding the collapse of FTX. On this occasion, Charlie Munger issued a strong criticism of cryptocurrencies, saying that they are a pernicious mixture of deception and illusion.
Charlie Munger Against Cryptocurrencies
In an interview with CNBC, Charlie Munger compared cryptocurrencies to child prostitution and pointed out that “it’s a very, very bad thing“. The country didn’t need a currency that was good for kidnappers.”
“There are people who think they have to be in all the companies that are in fashion. I think it’s completely crazy. They don’t care if it’s child prostitution or bitcoin.”
Similarly, Charlie Munger has indicated that cryptocurrencies are partly a combination of fraud and deception. “You see many illusions. Part fraud and part deception. It’s a bad combination“, he pointed out.
Along the same lines, 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.
So, Warren Buffett’s right-hand man blamed the government for not banning cryptocurrencies sooner and letting things get out of hand.
Notably, Charlie Munger’s remarks come after a traumatic week for cryptocurrencies. This after a drop in the value of FTX’s FTT coin caused the stock exchange to crash and collapse completely.
The cryptocurrency market in crisis
Market turmoil over the past week has caused the prices of a variety of digital currencies to hit new lows.
Indeed, the value of bitcoin (BTC), the largest cryptocurrency in the world, has fallen almost 65% since the start of the year and traded for a few minutes, Sunday November 13, at 15,970 dollars, a new 2022 low.
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