• Charlie Munger, Vice Chairman of Berkshire Hathaway, has called on the US government to ban cryptocurrency trading.
• He believes cryptocurrencies have no real value and are a form of gambling with a near-100% edge for the house.
• China recently announced a strict ban on crypto-related services, and Munger urged the US to follow its example.
Charlie Munger Wants Cryptocurrency Ban in U.S.
Charlie Munger, Vice Chairman of Berkshire Hathaway, has called on the US government to impose an absolute ban on cryptocurrencies. He believes that these digital assets have no real value as they are intangible and unproductive. Furthermore, he views cryptocurrency as a form of gambling with a near-100% edge for the house.
China Sets Precedent
Munger praised China for recently announcing a strict ban on crypto-related services and urged the United States to learn from its example. He also pointed out that England imposed an absolute ban on all public trading in new common stocks for about a century which could serve as another precedent for the U.S..
Warren Buffet Agrees
It is noteworthy that his longtime business partner Warren Buffet shares his view on cryptocurrencies as well. Both men believe that it’s important to protect investors from speculative investments that lack any underlying value or intrinsic worth and can result in substantial losses if mismanaged or manipulated by malicious actors.
Crypto Market Performance
Despite Munger’s opinion, crypto market is having a fantastic start this year with Bitcoin currently up nearly 40% since January 2023 due to increased institutional interest and corporate adoption of blockchain technology across multiple sectors including finance, healthcare, energy etc..
Overall it is clear Charlie Munger does not approve of cryptocurrencies being bought by retail investors without fully understanding their risks associated with them; he believes governments should take steps to protect citizens from such speculative investments which can lead to significant losses if mismanaged or manipulated by malicious actors