Berkshire Hathaway’s Charlie Munger wants America to take a page from China and ban cryptocurrencies.
In a Wall Street Journal opinion piece Wednesday (Feb. 1), the billionaire vice chairman of the conglomerate decried the “wretched excess” of the crypto market.
“A cryptocurrency is not a currency, not a commodity, and not a security,” he wrote. “Instead, 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.”
Munger argued China offers the U.S. a way forward, saying that the country banned cryptocurrencies after determining “they would provide more harm than benefit.”
China instituted that ban in 2021, saying that it wanted to protect national security and social stability. The government cited the use of cryptocurrencies in illegal activities like gambling, money laundering and pyramid schemes.
Related: US Congressman Blames ‘Billionaire Crypto Bros’ For Delayed Regulations
It’s not the first time Munger, who will turn 100 next year, has voiced his contempt for crypto. (His business partner Warren Buffet is of the same mindset, once referring to bitcoin as “rat poison squared.”)
In November, Munger gave an interview with CNBC in which he called cryptocurrencies a mix of fraud and delusion.
“That’s a bad combination,” he said. “I don’t like either fraud or delusion. And the delusion may be more extreme than the fraud.”
Those comments came in the wake of the collapse and bankruptcy of the FTX exchange, which has since led to calls for the government to take action on the crypto sector.
Much of that conversation has centered around regulating, and not banning, cryptocurrencies. Earlier this week, the Biden administration called on Congress to speed up its crypto enforcement efforts as the White House unveiled a “roadmap” for dealing with the sector.
In that document, the White House warns against “deepening ties between cryptocurrencies and the broader financial system,” even going so far as to call the prospect a “grave mistake.”
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI