Charlie Munger Compares Bitcoin to Child Trafficking, Likes Central Banks

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Berkshire Hathaways Vice Chairman remains staunchly skeptical of crypto in the wake of FTXs collapse.

Having previously characterized Bitcoin as rat poison and a venereal disease, Charlie Munger now likens the most valuable cryptocurrency to child trafficking.

There are people who think theyve got to be in on every deal thats hot, he told CNBC on Tuesday, while reflecting on high-profile investors getting involved with the industry. They dont care if its child prostitution or Bitcoin. I think its totally crazy.

The 98-year-old billionaire said that watching numerous reputable people support crypto both pains and depresses him, and that theyve made a huge mistake by associating with such scumball promotions.

Munger said that while the parties involved with FTX were well-intentioned, they were blinded by a mixture of fraud and delusion.

One of the worlds largest and most high-profile crypto exchanges, FTX, filed for bankruptcy on Friday after allegedly embezzling customer funds to prop up its sister firm, Alameda Research. In the wake of their collapse, the numerous sponsors and partners to sign deals with FTX within the past few years are rushing to cut ties.

Ironically, many crypto community figureheads have argued that FTXs fallout only reinforces the need for decentralized technologies like Bitcoin, which dont require centralized intermediaries to function. Munger, however, draws no distinction between crypto itself or its surrounding industry giants.

Good ideas carried to wretched excess, become bad ideas, he said. Nobody’s gonna say, I got some s*** that I want to sell you. They say, Its blockchain!

Instead of crypto, the vice chair remains a fan of the legacy monetary systems central banking model. By and large, I like central bankers. By and large, I hate Bitcoin promoters, he said.

Two exceptions to that rule are Elon Musk and Tesla, despite their prior promotion and acceptance of Bitcoin. I do not equate Tesla with Bitcoin, he said. Tesla has made some real contributions to civilization.

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