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Charlie Munger at a press conference for Berkshire Hathaway on April 30, 2022.
CNBC
Berkshire Hathaway Vice Chairman Charlie Munger has urged the US government to ban cryptocurrencies like China, saying the lack of regulation allows for miserable excesses and a gambling spirit.
Cryptocurrencies are not currencies, commodities or securities, Munger, 99, said. An article published in The Wall Street Journal Wednesday evening.
“Instead, it’s a gambling contract with an almost 100% edge of the house, concluded in a country where gambling contracts are traditionally regulated only by lazily competing states,” Munger said. , the United States should enact new federal legislation to prevent this.”
Munger, along with his business partners, Warren BuffettMunger’s latest comments have been exacerbated by the collapse of FTX, once one of the world’s largest exchanges. It came at a time when the crypto industry was plagued with problems, from failed projects to liquidity crises.
cryptocurrency market lost more than $2 trillion Last year’s value.the price of BitcoinAccording to Coin Metrics, it is the world’s largest cryptocurrency.
A well-known investor said that privately held companies have issued thousands of new cryptocurrencies in recent years that are publicly traded without prior government approval for disclosure. Some are sold to promoters for almost nothing, and then the general public buys them at much higher prices without fully understanding the “promoter-friendly pre-dilution”.
He cited two “interesting precedents” that could lead the United States to sound action.China strictly prohibits services that offer transactions, order matching, token issuance, and cryptocurrency derivatives. Second, since the early 1700s, the British parliament has banned all public trading of new common stock, and maintained this ban for about 100 years, Munger said.
What should the US do after a cryptocurrency ban is implemented? Well, one more course of action might make sense.
(Read the full article in the journal here.)
