- Charlie Munger echoes his views on cryptocurrencies.
- He praises China for completely banning cryptocurrencies.
- Cryptocurrencies are off to a great start to the new year.
Charlie Munger, vice chairman of Berkshire Hathaway, says the U.S. government should push for an absolute ban on cryptocurrencies.
Munger says cryptocurrencies have no real value
Munger has long opposed cryptocurrencies and does not associate real value with these assets as they are intangible and counterproductive. repeats his view in a recent op-ed in . wall street journalHe said:
Crypto is not a currency, commodity, or security. This is a nearly 100% favorable wagering contract for the house, entered into in a country where wagering contracts are traditionally regulated only by lazily competing states.
Nonetheless, with Bitcoin currently up nearly 40% since the beginning of 2023, it looks like the cryptocurrency market is off to a great start to the new year.
America should learn from China’s example
Influential investors recently praised China announcement It has severely banned crypto-related services and urged the United States to learn from its example.
He also cited England’s ban on all public trading in new common stock for nearly a century in the early 1700s as a precedent.
In some cases, large blocks of cryptocurrency are sold to promoters for almost nothing, and then the public buys them at much higher prices without fully understanding the pre-dilution in favor of the promoters.
It’s also worth noting that his business partner, one of the richest men in the world, is still alive. Warren Buffettalso shares his views on cryptocurrencies.