"This is a very, very bad thing. The country did not need a currency that was good for kidnappers," Munger said in an interview on CNBC's "Squawk Box."
What To Know: Munger, the right-hand man of Warren Buffett, has long been opposed to Bitcoin (CRYPTO: BTC) and other digital currencies. His comments come as the entire crypto industry is in peril.
FTX, related trading firm Alameda Research and approximately 130 affiliated companies filed for Chapter 11 Bankruptcy in early November following the collapse of the FTX Token (CRYPTO: FTT) and the unraveling of Sam Bankman-Fried.
Speculation surrounding FTX started near the beginning of the month following reports that a significant portion of Alameda Research's balance sheet consisted of FTT. The token plunged as the crypto market became concerned about FTX's liquidity.
Rival exchange Binance then agreed to acquire FTX before backing out of the deal shortly after, citing "corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations."
"I see people who were once regarded as very reputable people helping these things exist," Munger said.
"There are people that think that you've got to be in on every deal that's hot, and they don't care whether it's child prostitution or Bitcoin."
Why It Matters: The FTX decay is widespread and the entire crypto industry is being viewed like a bottle of hemlock — don't drink me.
Munger noted that Rome took a long time to decline from its peak, and suggested that the same could happen to other civilizations. All of the people who are promoting Bitcoin are promoting the decline of civilization, he added.
"You are seeing a lot of delusion. It's partly fraud and partly delusion. That’s a bad combination," Munger said.
$BTC Price Action: Bitcoin is down more than 60% since the start of the year.
At publication time, Bitcoin was up 2.73% over a 24-hour period at $17,018.04.
Originally published on Nov. 15, 2022
Photo: Created with an image from Nick Webb on flickr