Charlie Munger: Cryptocurrency Is A Combination Of Fraud And Delusion

Charlie Munger, vice chairman of Berkshire Hathaway. (Photo; Doc. Crypto-Market)

Warren Buffet's right-hand man at Berkshire Hathaway and crypto asset critic Charlie Munger recently criticized cryptocurrencies after the collapse of FTX. According to Munger, cryptocurrencies are a combination of destructive fraud and illusions.

In an interview with CNBC, Charlie Munger compared cryptocurrencies to child prostitution. Munger assessed that cryptocurrencies are only used by criminals, including kidnappers.

This (crypto) is a very, very bad thing. This country does not need a good currency for the kidnappers," Munger said.

There are people who think they should be present in every important deal. I think it's really crazy. They don't care if it's child prostitution or bitcoin," he added.

Munger currently serves as vice chairman at Berkshire Hathaway, a conglomerate company focused on insurance and property set up by Warren Buffet in the 1970s.

"You see a lot ofLARity. Part of the scam and some others are imaginary. It's a bad combination," Munger said.

When discussing the crypto scam scheme, Munger quipped the desire to get rich quickly crypto token developers. Munger said that imagining someone can create a new token that can immediately turn a 12-year-old child into a billionaire is "crazy" and "crazy."

However, he acknowledged that the role of policy regulators including regulators cannot work optimally because cryptocurrencies are new. On the other hand, Munger blamed the government for not moving quickly to ban the spread of cryptocurrencies more quickly.

Charlie Munger made the remarks in the volatile week in the crypto industry after one of the largest crypto exchanges, FTX, filed for bankruptcy. The collapse of FTX has dragged down the decline in the crypto market. Bitcoin (BTC) also fell 9.1 percent in the past week. At the time of writing, BTC is trading at 16,918 US dollars (equivalent to Rp264,405,136) per coin.