Charlie Munger.

Charlie Munger called out fraud and delusion in crypto, days after Sam Bankman-Fried’s FTX imploded.
Warren Buffett’s right-hand man said bitcoin and other crypto should never have been legal.
Munger praised Elon Musk and Tesla’s unlikely success, and the Fed’s focus on reducing inflation.

Charlie Munger has trashed bitcoin and other cryptocurrencies, slammed regulators for not banning them early on, and called out an epidemic of bad behavior in the crypto space.

He made the incendiary comments in a rare CNBC interview this week, just days after Sam Bankman-Fried’s FTX exchange became the latest crypto player to implode.

Warren Buffett’s business partner and the 98-year-old vice-chairman of Berkshire Hathaway also lavished praise on Elon Musk and Tesla, and supported the Federal Reserve risking a potential US recession to rein in historic inflation.

Here are Munger’s 16 best quotes, lightly edited for length and clarity:

1. “We don’t need a new, wonderful, non-traceable medium that makes it easier to commit frauds of various kinds. What is bitcoin doing for anybody?” (Munger gave the example of ransomware attackers demanding bitcoin as payment.)

2. “It pains me that in my own country, I see people who once were regarded as very reputable people helping these things exist, promoting their use and so forth. This is a very, very bad thing. The country did not need a currency that’s good for kidnappers and so on.”

3. “The danger flags are wagging so clearly. A guy says, ‘I’m going to sell you plenty of nothing, and nothing’s plenty for you.’ When you hear that, you ought to think this is a big joke. But people think this is a real asset — it’s not a real asset, it’s a bunch of fraudsters and crazy people.”

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4. “Nobody can invent a new thing that makes every 12-year-old kid a billionaire. It’s crazy, it’s demented. I don’t believe in magic. When I see magic, I believe somebody’s trying to fool me.”

5. “It’s partly fraud and partly delusion — that’s a bad combination. I don’t like either fraud or delusion, and the delusion may be more extreme even than the fraud.” (Munger was discussing whether crypto executives have good intentions.)

6. “There are people who think that you’ve got to be on every deal that’s hot, and they don’t care whether it’s child prostitution or bitcoin. I think that’s totally crazy. Reputation is very helpful in financial life, and to destroy your reputation by associating with scumballs and their scumball promotions is a huge mistake.”

7. “The authorities have been confused by the whole damn thing. A bunch of elderly people who have done things a certain way for a long time, now have to deal with a new standard. It’s like a mosquito catcher — they know how to smack mosquitoes, they just can’t handle gnats. It’s just insane, none of this stuff should ever have been allowed.”

8. “Gold has been around for 2,000 years. If you were a Jewish guy living in Vienna in 1939, gold would be very useful. I don’t equate …read more

Source:: Business Insider

      

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