Right hand of Warren Buffett believes there is too much deception and fraud in the bitcoin industry.
Charlie Munger, a longstanding associate of Warren Buffett, vice chairman of Berkshire Hathaway, and critic of Bitcoin, has once more lashed out against the cryptocurrency. In a recent interview, the executive dismissed bitcoin’s potential as a medium of exchange.
American billionaire investor Charlie Munger repeated his disapproval of the cryptocurrency market, claiming that bitcoin encourages kidnappings, child prostitution, and other illicit activities. He also said that a “bad combination” of deception and delusion led to the FTX accident.
Munger’s Latest Comments
One of the industry’s most controversial aspects is Charlie Munger. In a recent interview with CNBC, he emphasized his stance, saying bitcoin is appropriate for criminals and detrimental to the USA: “This is a very, very horrible thing. The nation didn’t require a currency that was valuable to kidnappers. Some individuals believe they must participate in every hot trade. I find that to be completely absurd. Whether it involves child prostitution or bitcoin, they don’t care.”
But according to numerous estimates, cash is still the most widely used financial tool in illegal activities like prostitution, drug sales, extortion, and many others. As a result of its open-source blockchain technology, Bitcoin is a lousy tool for criminals.
The 98-year-old American also offered his opinion on FTX’s most recent demise. Although he believes that the industry is full of con artists, he also believes that most participants are deluded and do not recognize the truth. When good intentions are taken too far, they turn into harmful intentions. Nobody will approach you and offer to sell you something. They claim that blockchain is responsible, Munger warned.
His Previous Warnings
Bitcoin will never become “the medium of trade for the globe,” according to the millionaire in 2021. The only positive thing he seemed to have ever said about the asset was when he called the main cryptocurrency the “artificial alternative for gold.” He clarified, “because I never buy any gold, I never buy any bitcoin.”
In December 2021, Munger expressed his wish that digital assets had never existed. He also agreed with China’s decision to officially ban the asset class, lamenting the “wrong decision” taken by his country.
This year, he claimed that exploring bitcoin and altcoins is like “investments in nothing” and that doing so requires being “nearly insane.” He said, “I avoid it like it was a sludge-filled open sewer. I just completely ignore and advise everyone to follow my lead.”
Promoting BTC on Twitter is Wrong
The CEO of the European financial business Klarna, Sebastian Siemiatkowski, remarked on the social media promotional messages about BTC in another conversation that linked bitcoin and Tesla. Although he thinks cryptocurrencies are an “interesting technology,” he finds Elon Musk, the CEO of Tesla, updating his Twitter bio to include Bitcoin or other comparable projects to be “very” unsettling.
Siemiatkowski said, “When I look up bitcoin on Twitter, I see messages like, ‘Buy now, or you’re going to miss the best opportunity of your life.’ I would receive a punishment or possibly go to jail if I took Klarna stock and advertised it using similar language. Why regulators aren’t going after these things surprises me.”
Due to Tesla’s $1.5 billion investment in Bitcoin, several traditional media sites have been able to analyze the relationship between the two and make comparisons based on their respective performances.
Munger concluded that “Oscar Wilde’s remarks about fox hunting makes me think of bitcoin. He claimed it was the unspeakable pursuing the unthinkable.