Billionaire Charlie Munger Calls for Total Crypto Ban in the U.S.
Charlie Munger, Vice Chairman of Berkshire Hathaway and a long-time critic of Bitcoin, has recently called for the United States to follow China's lead and impose a complete ban on cryptocurrencies.
In a recent op-ed for the Wall Street Journal, investing mogul Charlie Munger argued that the rise of cryptocurrencies is due to regulatory gaps, as crypto is neither classified as money, goods, nor securities.
Munger stated:
“Instead, crypto is a form of gambling with almost a 100% edge for the house, conducted in a country where traditional gambling contracts are only regulated by a few competitive states. Therefore, the U.S. should enact new federal legislation to prevent this.”
Munger advocates that the U.S. should emulate China's crypto crackdown to protect investors and mitigate risks to financial stability.
In 2021, Munger described Bitcoin (BTC) as “disgusting and contrary to human civilization,” and labeled it a “fraud” related to a ransom scandal. At that time, Munger supported China's decision to ban crypto. A year later, the right-hand man of Warren Buffett intensified his skepticism, referring to Bitcoin as “an investment in nothing.”
This isn’t the first time Munger or Berkshire Hathaway CEO Warren Buffett have criticized Bitcoin. Buffett has compared cryptocurrencies to lifeless seashells, stating, “They are seashells, not investment opportunities to me,” and has avoided investing in them despite their price dropping to $25.
Chamath Palihapitiya, a former protégé of Warren Buffett and Charlie Munger, has countered his mentors' views. Palihapitiya remarked, “I think it’s unfair to disregard something without understanding it.”
