Charlie Munger slammed regulators for not banning cryptocurrencies early on and called out bad behavior in the space.
He made the comments in a CNBC interview this week, just days after Sam Bankman-Fried's FTX exchange collapsed.
The 98-year-old vice-chairman of Warren Buffet's company lavished praise on Musk and the Federal Reserve risked a US recession to control historic inflation.
This is the first thing. We don't need a new medium that makes it easier to commit frauds. What is the use of the virtual currency for anyone? Munger gave an example of attackers trying to extort money from people.
There are two In my country, I see people who used to be thought of as veryReputable people helping these things exist, promoting their use and so on. It's a very bad thing. There was no need for a currency that was good for kidnappers.
There are three. There are danger flags wagging. A guy says he is going to sell you a lot of nothing. This is a big joke when you hear it. It's a bunch of fraudsters and crazy people that people think this is a real asset.
There are four. Every 12-year-old kid can't invent a new thing that will make them a billionaire. It's insane. I am not a believer in magic. I believe that someone is trying to fool me.
There are five. That's a bad combination. The delusion may be more extreme than the fraud, and I don't like it. Munger was talking about the intentions of executives in the industry.
There are six. Some people think that you have to be on every deal that's hot, and they don't care if it's child prostitution or virtual currency. I don't think that is right. To destroy your reputation by being associated with scumballs is a huge mistake.
There are seven. The authorities are confused by everything. A group of elderly people who have done things a certain way for a long time now have to deal with a different standard. They know how to hit mosquitoes but can't handle gnats. This stuff should never have been allowed.
There are eight. For the past 2,000 years, gold has existed. If you were a Jew living in Vienna in 1939, gold would be of great use. I don't think there's a connection between the two. Munger was talking about the use of digital gold.
There are nine. I was surprised that the company did as well as it did. I don't equate the two, but I do think they're different. Some contributions to civilization have been made byTesla. There are some good things that Musk has done.
There are ten. We haven't had a successful car company in a long time. It's hard to get into the car business. It's a small miracle that the car business has been done byTesla.
There is a new date for the 11th. I am not against new things. I'm against everything that's new because it's kind of magic with a chain-letter delusion. The things do a lot of damage. Big collapses can cause recessions and depressions. Munger was talking about the FTX filing.
The Fed is willing to have a recession in order to keep inflation under control. They are supposed to do that. They're supposed to be the only person at the party who doesn't drink.
13th When this thing began, we were in a lot of trouble. We would have had one hell of a mess if the Fed hadn't done what it did. The US central bank stimulated the economy after the swine flu hit.
The 14th. The central bank in Japan looks like a little mouse that doesn't try to do anything. The Bank of Japan has slashed interest rates in order to boost economic growth.
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