The US should follow in China’s footsteps and implement a “ban on cryptocurrencies”, according to billionaire investor Charlie Munger.
writing in opinion piece To the Wall Street Journal on Wednesday, Mr. Munger said that crypto “is not a currency,” and compared the crypto market to a casino “with almost 100% edge to the house.”
“A cryptocurrency is not a currency, not a commodity, and not a security,” Mr. Munger wrote, instead calling crypto “a gambling contract” where the odds strongly favor the house. And to make matters worse, these bets “are being entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity,” Munger wrote.
He suggested that the US should take action at the federal level to get rid of crypto:
“Obviously the US must now enact a new federal law that prevents this from happening.”
The well-known investor, who served as Warren Buffet’s right-hand man at investment conglomerate Berkshire Hathaway for decades, said the only reason the crypto craze is continuing in the US is a “gap in regulation”. ,
follow china’s example
Mr. Munger, who celebrated his 99th birthdayth Birthday, earlier this year, did not specify in his piece what exactly he meant by “banning of cryptocurrencies” and whether this would include a ban on crypto trading, crypto transactions, or even just holding crypto. Is.
What he did, however, was praise the Chinese Communist government’s effort to rid his country of cryptocurrencies, while suggesting that the US should do the same.
“What should America do after cryptocurrencies are banned? Well, another course of action might make sense: thank the Chinese Communist leader for his brilliant example of his uncommon wisdom,” Mr. Munger wrote.
This is not the first time Munger has criticized cryptocurrencies
The latest opinion piece by Mr Munger is far from the first billionaire to criticize crypto and call for increased regulation.
Following The collapse of the crypto exchange FTX Munger called in November last year bitcoin (btc) especially “a very bad thing, He added that in his view the US “didn’t need good currency for kidnappers etc”.
“There are people who think they have to be on every deal that is hot. And they don’t care if it’s child prostitution or bitcoin. I think that’s absolutely insane. Reputation helps a lot in financial life,” the seasoned investor said at the time.
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