Charlie Munger Says the U.S. Should Ban Crypto
The US should follow China's lead and ban cryptocurrencies. Berkshire Hathaway vice chairman Charlie Munger said in an op-ed for the Wall Street Journal.
The investor linked the growth of digital assets to a regulatory gap. According to an associate of Warren Buffett, they cannot be classified as currencies, commodities or securities.
In the top manager's view, two precedents - China's cryptocurrency ban and the actions of British authorities in the 18th century - could prompt "sensible action". Parliament then banned the issue of new shares for the next hundred years in response to the depression in those years.
In the first case, the Celestial Empire authorities "wisely concluded that cryptocurrencies would do more harm than good". In the second, the decision set the stage for the Age of Enlightenment and the Industrial Revolution.
In December 2021, Munger said Chinese authorities made the right decision by banning cryptocurrencies and related activities.
Earlier, the vice chairman of Berkshire Hathaway compared Tesla and bitcoin to "louse and flea" and also questioned the ability of digital gold "to become global tender".
In 2022, Charles Munger called cryptocurrencies "an investment in nothing" and compared digital assets to a "venereal disease".