The 99-year investment veteran, who is also vice chairman of Berkshire Hathaway, is calling for legislation banning, within the United States, any use of cryptocurrencies. In doing so, he compares crypto to gambling.
Veteran investor Charlie Munger speaks out against Bitcoin and crypto
Charlie Munger is a very influential figure. He has built his position, among other things, by acting for Berkshire Hathaway, where he is supporting Warren Buffett in more investments. At the same time, Munger is known for his critical approach to the cryptocurrency market. This time, however, his words resonate louder than usual, as he compares virtual assets to gambling, while calling for their complete prohibition.
In a recent interview Munger gave to The Wall Street Journal, he called cryptocurrencies “a gambling contract with an almost 100% advantage for the casino.” He also pointed out that crypto products are neither currencies nor commodities and do not qualify as securities either. In his opinion, the U.S. government should take action as soon as possible to have these types of assets banned. He thinks that following in the footsteps that China followed less than two years ago would be the best solution.
An inappropriate comparison?
Recall that the Chinese government for many years sought a complete ban on mining, trading and owning cryptocurrencies. Ultimately, in 2021, it made a decision that shook the market and led to a mass migration of miners, to other countries such as Russia, Kazakhstan and the United States. For Munger, the moves taken by the authorities of the Middle Kingdom seem exemplary. He admitted:
“What should the United States do after banning cryptocurrencies? Well, one more action might make sense: Thank the Chinese Communist leader for his fine example of uncommon sense.”
The veteran investor’s stance thus appears to be extremely radical. However, there are some inconsistencies in it. While Munger sees a kind of similarity between the crypto market and gambling, it should be remembered that gambling in the US is legal.
The cryptocurrency community expresses a different view
People closer to the cryptocurrency segment, decided to comment on Munger’s words. Many opinions appeared on Twitter. They mainly indicated that the vice chairman of Berkshire Hathaway, not knowing the market, has no idea what he is talking about. One person whose commentary was particularly profound is APE NFT author Adam McBride. He states:
“The battle lines are drawn. Freedom or tyranny. Deposit-free wallets are a hill we cannot surrender.”
