• Charlie Munger, Vice Chairman of Berkshire Hathaway, has urged the U.S. government to push ahead with an absolute ban on cryptocurrencies as he believes they have no real value.
• He praised China for recently announcing a strict ban on crypto-related services and quoted the example of England in the early 1700s banning all public trading in new common stocks for about a century.
• His business partner Warren Buffet shares his view on cryptocurrencies as well.
Charlie Munger Wants US to Ban Cryptocurrencies
Charlie Munger, Vice Chairman of Berkshire Hathaway, has expressed his view that the United States should push ahead with an absolute ban on cryptocurrencies due to their lack of real value. He praised China for recently announcing a strict ban on crypto-related services and pointed to England’s example in the early 1700s when it banned all public trading in new common stocks for about a century as precedence. His business partner Warren Buffet shares his view on cryptocurrencies as well.
Munger’s View On Cryptocurrencies
Munger has long been against cryptocurrencies and associates no real value to them since they are intangible and unproductive. In a recent op-ed in the Wall Street Journal, he said: Crypto is not a currency, commodity, or security. It’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity.“ Nonetheless, despite this sentiment, Bitcoin is currently up nearly 40% since the start of 2023 despite Munger’s opinion on its worthlessness as an asset class.
China Sets Example For US
Munger lauded China for executing its full ban on cryptocurrencies and urged the US government to learn from its example. He argued that „In some cases, a big block of cryptocurrency has been sold to a promotor for almost nothing, after which the public buys in at much higher prices without fully understanding the predilution in favour of the promoter.“
Warren Buffett Shares Same View
It is noteworthy that his business partner Warren Buffett shares his viewpoint regarding cryptocurrencies; both men agree that these assets have no real value and should be avoided altogether if possible due to their lack of inherent worthiness associated with them compared to other assets such as stocks or commodities.
In conclusion, Charlie Munger strongly believes that cryptocurrency assets have no real value and should be avoided at all costs due to their lack of inherent worthiness compared with other more tangible assets such as stocks or commodities; he also cited China’s recent example of banning crypto-related services along with England’s similar stance taken back centuries ago as examples why this approach should be adopted by US governments now too if possible