Charlie Munger’s Viewpoint on FTX Collapse
Vice President of Berkshire, Charlie Munger, is the apple-eyed boy of Warren Buffett and both of them have been doing business together for many years.
However, the former had a few revelations of which FTX, Bitcoin, the US Federal Reserve, and Elon Musk were all part.
Firstly, Munger made a general comment in which he noted that people in the US were once regarded as reputable.
He then criticized cryptocurrencies and said that the world, particularly Americans, does not need so-called currencies which are primarily used for robbing others.
Munger Hates Cryptocurrencies and Dislikes Bitcoin
Munger showed his disappointment against those who advocate for cryptocurrencies and their inclusion in the mainstream financial system.
He claimed that people ignore the fact that Bitcoin and others alike are also being used for heinous crimes such as ‘child prostitution. He then suggested that advocating for digital currencies is an ill-founded idea to him.
Munger was asked to make comment on the prevailing circumstances at FTX and whether the investors should not have carried out the due diligence.
He replied that FTX’s situation is poised with fraud and delusion and he doesn’t like either of the two. However, to him delusion is much worse than fraud, suggested Munger.
98-years old Munger added that from now on nobody would buy the idea that cryptocurrencies would make him a billionaire.
He suggested that crypto trading is crazy as even he could produce a crypto coin, name the coin after him and start trading it irrationally.
Appreciation of the Federal Reserve
As regards US Federal Reserve, Munger stated specifically that he appreciates the fact that there is an institution like Federal Reserve. He lauded Fed for playing its role as a worthy central bank in managing world reserve currency.
He added that for all intents and purposes, he appreciates the existence of global central banks, however, he doesn’t like people promoting Bitcoin.
VP of Berkshire Hathaway is known to be much concerned about Bitcoin and the existence of overall digital currencies.
In one of his past remarks, he even Bitcoin as the ‘rat poison’ and termed it as ‘against the interest of sensible people.
In further disregard of cryptocurrencies, a few months ago Munger said that digital currencies are like a viral infection. He even declared them to be breeding grounds for malicious organisms.
Can’t Put Bitcoin And Tesla In One League
As regards Elon Musk’s Tesla, Munger suggested that Tesla and Bitcoin cannot be put in one league as both are entirely different. He denied that Bitcoin hasn’t innovated anything commendable but Tesla has.
He appreciated Elon Musk for doing great things for the masses which others couldn’t dare to do.