Charlie Munger still does not like crypto.
99-year-old vice chairman of Berkshire Hathaway published a column in the Wall Street Journal two days ago calling for the U.S. to completely ban crypto.
– Cryptocurrency is not a currency, it is not a commodity, nor a security. Instead, it is a gambling contract entered into in a country where gambling contracts are traditionally regulated only by states competing in laxity – stated Munger.
He criticized crypto projects for pre-selling tokens to venture capital (VC) firms before a minor portion of the token offering was made available to the public. He called it a predatory scheme that allows early investors to sell their cheaply acquired tokens at multiples higher prices to small investors.
– Such a wretched excess continues because there is a gap in regulation – asserted Munger, citing the need for government pre-approval before a privately owned company issues a new token.
He then called on the U.S. to follow China’s lead and simply ban cryptocurrencies, stating that the nation should thank ‘Chinese communist leader Xi Jinping for his brilliant example’.
This is not the first time the billionaire has expressed his opinion on crypto; in fact, the column could mark Munger’s most reasoned critique of the industry to date. In May 2021, Munger stated that the asset class is ‘disgusting and contrary to the interests of civilization’, adding that he has not ‘accepted a currency that is so useful to kidnappers and extortionists and so on’.
Munger’s well-known business partner, chairman and CEO of Berkshire Hathaway Warren Buffett, has also expressed his skepticism towards crypto, albeit in a milder sense.
– The idea that bitcoin has some huge intrinsic value is, in my opinion, a joke – he claimed in a CNBC interview in 2018.
