- Charlie Munger reiterates the views he holds on cryptocurrencies.
- He praises China for its complete ban on cryptocurrency.
- The new year is a great one for cryptocurrencies.
U.S. government should push ahead with an absolute ban on cryptocurrencies, says Charlie Munger – the Vice Chairman of Berkshire Hathaway.
Munger claims that cryptocurrencies don’t have any real value
Munger has always been opposed to cryptocurrencies and associates no value to them as they are intangible. He reiterated this view in an op-ed published in the Wall Street JournalHe stated:
The cryptocurrency is not a currency or commodity. 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.
However, the crypto market appears to be enjoying a wonderful start to the year. Bitcoin is up nearly 40% from the beginning of 2023.
U.S. should look to China’s example for lessons.
China was recently praised by an influential investor announcing It imposed a ban on all crypto-related services, and encouraged the United States to follow its lead.
He also cited the prohibition that England placed in the early 1700s against all public trading of new common stocks for a century as an example.
Sometimes, a large block of cryptocurrency is sold to a promotor almost for nothing. The public then buys it at much higher prices, without understanding the predilution favoring the promoter.
It is also noteworthy that his business partner and one of the world’s richest men alive, Warren BuffetHe also shares his views on cryptocurrencies.
