Billionaire Charlie Munger Criticizes Cryptocurrency Yet Again
Billionaire Charline Munger, vice chairman of one of the biggest holding companies Berkshire Hathaway, and renowned crypto skeptic renewed his criticism by urging US regulators to ban cryptocurrency.
99-year-old Munger shared his opinion in a WSJ article released on the 1st of February.
“A cryptocurrency is not a currency, is not a commodity, and is not a security. Instead, it is a gambling contract with an almost 100 percent house edge, entered into a country where gambling contracts are traditionally regulated only by states that compete on negligence.”
He calls token presales exclusive to VCs “predatory tokenomics” as big investors could dump their holdings onto retailers.
Munger argues that “this kind of unfortunate excess happens because there’s a regulatory gap,” referring to the government’s need for prior approval of disclosures before forcing a private company to issue a new coin.
The billionaire urged the US to follow China’s lead and ban cryptocurrencies, saying the nation should thank “Chinese communist leader [Xi Jinping] for his splendid example of uncommon sense.”
In May 2021, Munger stated that digital assets are “abhorrent and contrary to the interests of civilization” and that he doesn’t “welcome a currency that is so useful to kidnappers, extortionists, etc.“.
Warren Buffet, Charlie Munger’s partner and chief executive officer at Berkshire, has also shown his disregard for cryptocurrency.
During an interview with CNBC in 2018, Buffet stated that “the idea [that Bitcoin] has some huge intrinsic value, I think, is a joke.“