Charlie Munger is a billionaire known for his aversion to crypto. Having celebrated its 99e birthday on the 1ster last January, he spoke again on the subject. He indeed remains faithful to his opinions: to ban crypto in the United States. In an article published by the Wall Street Journal on 1er February, he explains why.
Crypto is not a tangible, productive asset
This is not Charlie Munger’s first “anti-crypto” statement. Nevertheless, its message remains the same: ban crypto in the United States. “Cryptocurrency is neither a currency, nor a commodity, nor a security,” he explained. The current vice president of Berkshire Hathaway instead views this asset as “a gambling contract with an almost 100% advantage for crypto companies.”
A lack of regulation
In WSJ article, Charlie Munger makes an important point: the reason for the crypto craze in the United States is the lack of regulation. According to him, the current government should enact a law banning crypto. However, he remains vague about his words. Indeed, Munger does not specify whether he only wishes to prohibit the holding of crypto or to include trade as well as all forms of crypto transactions.
Crypto in the US: Better to follow in China’s footsteps
“What should the US do after a crypto ban is in place? Well, one more action might make sense: to thank the Chinese Communist leader for his magnificent example of uncommon common sense.”
While some analysts predict a strong comeback for China in the crypto market, Munger still seems to want to idealize the model established by this country. Until today, crypto payments are strictly prohibited in China. The current administration nevertheless allows trading.
Charlie Munger’s aversion to crypto is completely understandable, given recent events. At least he is right on one point: it is crucial to regulate the crypto market in the United States.
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