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.”
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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.“
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
