Charlie Munger’s Crypto Criticisms
• Charlie Munger, vice chairman of Berkshire Hathaway, has called for a federal law to ban cryptocurrencies in the United States.
• The online community was quick to criticize his suggestion due to it not aligning with the US’ principles of freedom.
• Many mocked him for not understanding that crypto is virtually unbannable and gambling is legal under US federal law.
Crypto Community Responds
The cryptocurrency community reacted quickly to Munger’s latest anti-crypto arguments, expressing their disbelief at how measures like China’s crypto ban go against the United States’ proclaimed support for freedom. People on social media pointed out that even after “banning” crypto in 2021, China continues to be one of the largest Bitcoin miners in the world and possessing crypto is still legal.
Munger Calls for Chinese Example
In an op-ed article in The Wall Street Journal, Munger called cryptocurrency a “gambling contract with a nearly 100% edge for the house.” He also suggested that the U.S. should follow in China’s footsteps and enact a new federal law that would ban crypto as well as thanking them for their “splendid example of uncommon sense” when it comes to regulation.
Gambling Legality vs Crypto Banning
Despite Charlie Munger calling cryptocurrency a “gambling contract,” gambling is actually legal under U.S. federal law – making his suggestion to follow China’s lead all the more bewildering given its legality compared to crypto regulations in other countries such as India or Japan.
The cryptocurrency community has once again ridiculed Bitcoin critic Charlie Munger for suggesting that the U.S should follow China’s lead and put laws in place banning cryptocurrencies due to its incompatibility with American values of freedom and its virtual unbanability regardless of regulation efforts from governments worldwide.