Charlie Munger is vice chairman of the multi-billion company Berkshire Hathaway and the so-called right hand of Warren Buffett, a centi-billionaire. Munger supported Buffett in earning billions of dollars since 1978.
Munger personally doesn’t like cryptocurrencies and believes that crypto and crypto markets are “Partly fraud and partly delusion.” In 2021 Munger termed Bitcoin, the giant of crypto, as “rat poison” and other crypto’s as “venereal disease.”
On Feb 1, 2023, while talking to Wall Street Journal op-ed, Munger termed, “ A cryptocurrency is not a currency, not a commodity, and not a security,” he added “Instead, it’s a gambling contract with a nearly 100% edge for the house… Obviously, the U.S. should now enact a new federal law that prevents this from happening.”
Munger stated that cryptocurrency investors are being taken advantage of by promoters and founders, noting that the creators of new cryptocurrencies often receive coins for “almost nothing.”
“After which the public buys in at much higher prices without fully understanding the pre-dilution in favor of the promoter,” The VC of Berkshire Hathaway claimed crypto investments as “wild and woolly capitalism.”
Munger asserted that the United States should learn a lesson from China which banned cryptocurrencies in 2021, and should structure laws that prevent both trading of cryptocurrency and the formation of new crypto products.
A question arises “What should the U.S. do after a ban on cryptocurrencies is in place?” Munger highlighted that “Well, one more action might make sense: Thank the Chinese communist leader for his splendid example of uncommon sense.”
Munger reasoned that cryptocurrencies in China were banned because Chinese authorities believed that cryptocurrencies “provide more harm than benefit” —it is one of the two reasons for banning crypto in China.
Munger talked about the failure of The South Sea Bubble, which was founded back in 1711, and the collapse of South Sea Bubble was the “World’s first financial crash,” it is a financial company founded by an act of parliament as a public-private partnership to help reduce the debt of cost of England’s national debt.
Warren Buffett is the fifth richest man on the globe with a $108.9B income annually, and his so-called right-hand Charles Munger is in 1347th position globally with a $2.3B annual income.
Munger also holds the position of Chairman of globally reputed media outlet Daily Journal Corp and sits on the board of retailer Costco. He has a total eight children from two different marriages.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/02/04/charlie-munger-suggest-u-s-to-ban-crypto-like-china-did/