Berkshire Hathaway Vice President Charlie Munger spoke about the collapse of the FTX cryptocurrency exchange, bitcoin, the achievements of Elon Musk and the role of central banks in the financial system.
98-year-old American economist Charlie Munger commented on the situation with the FTX trading platform, calling its activities fraud and misleading people with the help of politicians. He noted that it "hurts him to see respected people who promote cryptocurrencies and help them exist." The country does not need a currency that is ideal for robbers, fraudsters and other kinds of criminals, Munger said.
He expressed bewilderment that now any 12-year-old child can become a billionaire with the help of cryptocurrencies. Munger added that he could also just create a token by adding his last name to its name. According to the economist, this is real madness.
"Some people think they should get involved in every hot deal. They don't care what it is. And it's depressing. Reputation is extremely important in the financial sector, so destroying it by contacting scum and advertising their products is a huge mistake. I hate those who promote bitcoin," Munger said.
He also noted that the US Federal Reserve System (FRS) is an integral element of the financial sector. Therefore, wise regulators, such as central banks, must be present in the world of fiat currencies. Munger shared his opinion about Tesla CEO Elon Musk:
"I am surprised by Tesla's achievements. The company has made a real contribution to the development of our civilization by performing a miracle. Elon Musk achieved what other people could not do. But I don't identify Tesla with Bitcoin," commented the vice chairman of Berkshire Hathaway.
Munger has never been a fan of bitcoin and has always urged people to stay away from investing in cryptocurrencies. Earlier, he compared bitcoin to a sexually transmitted disease and demanded that the US authorities ban investments in crypto assets.