Why do people invest in cryptocurrencies? ‘Part fraud and part illusion’: Charlie Munger

“The country doesn’t need a good currency for kidnappers.”

– Charlie Munger

Charlie Munger, vice chairman of Berkshire Hathaway
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not a big fan of cryptocurrencies and shared my thoughts on it after FTX Bankruptcy.

“It pains me that when in my own country I see people who were once considered very prestigious people helping this thing survive, promoting its use, etc,” he said in an interview with CNBC airs Tuesday. “This is a very bad thing.”

Munger’s interview was conducted after FTX’s financial collapse and after former CEO Sam Bankman-Fried relinquished control of the company.

See more: Tom Brady, Steph Curry and Kevin O’Leary are about to lose big from FTX’s bankruptcy filing

What and who is to blame when good people make poor investment decisions? Munger believes it could be a combination of things.

“Part fraud and part illusion,” Munger said. “It’s a bad combination.”

“There are people who think they just have to get into every good deal… I think that’s completely crazy,” he added.

See more: ‘The Big Short’ author Michael Lewis traveled with Sam Bankman-Fried and will write a new book on the fall of FTX: report

Munger and the CEO of Berkshire Hathaway Warren Buffett have been crypto critics in recent years – Munger is a big critic of bitcoin
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“When you have your own retirement account and your retirement advisor suggests that you put all your money in bitcoin, just say no. He then called digital assets “stupid” and “evil.”

FTX halted withdrawals last week amid a downturn in multi-billion dollar liquidity. Rival Cryptocurrency Exchange Binance Announces Interest In Taking Over FTX before filing for bankruptcy, but chose to oppose the move and later called FTX’s financial problems “out of our control or ability to help.”

Bankman-Fried saw its net worth plummet by billions of dollars after the collapse of FTX. Financial groups support FTX including: Third Point Ventures, Tiger Global, Sequoia capital, SoftBank
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and BlackRock
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Prices are up 3.87% on Tuesday, but down 71% over the past year. Price for ether
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up 3.72% on Tuesday but down 70.23% over the past year.


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