Charlie Munger Wants U.S. to Ban Cryptocurrencies
- Charlie Munger, Vice Chairman of Berkshire Hathaway, reiterates his view on cryptocurrencies and lauds China for banning it.
- Munger sees no real value in cryptocurrencies as they are intangible and unproductive.
- He recommends the U.S. government to learn from China’s example and push ahead with an absolute ban on cryptocurrencies.
Cryptocurrency Performance in 2021
Cryptocurrencies have had a strong start to 2021 with Bitcoin up nearly 40% since the start of the year. However, Charlie Munger has been staunchly opposed to cryptocurrencies and associates no real value to these assets due to their intangible nature.
Munger’s View on Cryptocurrency
In a recent op-ed in the Wall Street Journal, Munger 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.“ He further recommended the U.S. government should learn from other countries‘ examples and push ahead with an absolute ban on cryptocurrencies.
Warren Buffett Aligns With Munger’s View
Munger’s business partner Warren Buffet shares his views about cryptocurrencies as well and both of them believe that there is no real value associated with such digital assets.