Charlie Munger calls on US to join China in banning crypto
The Berkshire Hathaway vice president compared cryptocurrencies to gambling contracts with a nearly 100% edge for the house.
Warren Buffett’s business partner Charlie Munger has proposed that the United States should follow in the steps of China to ban cryptocurrencies- which he considers a gambling contract.
In a WSJ opinion piece published on Feb. 2, Munger said that thousands of new cryptocurrencies had flooded the market, exposing the public to buy at much higher prices which favors the promoter.
The Bitcoin critic added that excesses in the crypto market are due to a gap in regulation. Consequently, he has called on the U.S. government to enact a federal law that will regulate the market.
Munger compared cryptocurrencies to gambling contracts with a nearly 100% edge for the house.
“A cryptocurrency is not a currency, not a commodity, and not a security. Instead, it’s a gambling contract with nearly 100% edge for the house,” Munger add.
Munger called on the U.S. to learn from the communist government of China in their quest to crack down on crypto. He said that China made a wise decision to conclude that crypto would provide more harm than benefit, hence banning the asset class in September 2021.
Back in July 2022, Munger compared crypto assets to open sewer and called crypto holders insane for investing in nothing.