In a recent media interaction, Charlie Munger, vice Chairman of Berkshire Hathaway, an American multinational conglomerate holding company headquartered in Omaha and a close ally of Warren Buffett, said that the United States should impose a federal ban on cryptocurrencies.
Munger also opined that cryptocurrencies are just a “gambling contract” while refusing to recognize digital assets as either securities or commodities. He also complained about the delay in the regulation leading to a lack of investor protection.
Sources reveal that Munger is like Buffett’s right-hand man, and he suggested that the US should follow the lead of China by prohibiting cryptocurrencies.
In addition, Munger also cites England’s reaction to a depression in the early 1700s as another precedent for a blanket ban on digital assets. Explaining the topic, Munger said that in response to a promotional scheme that led to depression, the English Parliament banned all public trading in new common stocks.
Apparently, the ban was in place for approximately a century, and as per Munger, this was the time during which England revamped its economy. In fact, as he says, England made the biggest national contribution to the enlightenment and the industrial revolution and even spawned the United States.
Concluding his opinions, Munger called on the US agencies to follow the approach of the Chinese communist leader of a “splendid example of uncommon sense” and ban cryptocurrencies from preventing further harm to the masses.
However, Munger’s crypto criticism is nothing new, as he has been one of the harshest personalities criticizing Bitcoin alongside other cryptocurrencies. In November, Todayq News reported that Munger described cryptocurrency as a currency for “kidnappers” in an interview.
Regarding Crypto, he had expressed his anguish at the fact that once “reputable” Americans are aiding the industry’s survival. He asserted that reputation is crucial to success in the business world and that it is a grave error to damage your reputation by associating with fools and dishonest people.
He also compared Bitcoin to prostitutes and suggested that individuals take advantage of every “hot” deal they can. Last year, he predicted that the largest cryptocurrency by market capitalization was likely going to zero.
In November, a video featuring Buffett and Munger from 2018 was taking rounds on Twitter, where they heavily criticized cryptocurrencies and people involved with them. Buffett says that the crypto market has become an attraction for charlatans, which means people falsely claiming to have special knowledge or skill. He also predicted crypto to end up with a bad fate finally.
Similarly, Munger, supporting Buffett’s view, says he dislikes cryptocurrencies even more than him. He refers to cryptocurrencies as ventures and says that the people trading in them are only doing it because others around them are doing too. He also goes on to call these cryptocurrencies disgusting.