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Berkshire’s Munger Says U.S. Should Ban Cryptocurrencies

Charlie Munger at a press conference for Berkshire Hathaway on April 30, 2022.


Berkshire Hathaway Vice Chairman Charlie Munger has urged the U.S. government to ban cryptocurrencies, as China has done, arguing that the lack of regulation allows for miserable excesses and a gambling ethos.

“Cryptocurrencies are not currencies, commodities or securities,” Munger, 99, said. An article published in The Wall Street Journal Thursday.

“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 and his business partner Warren Buffett have long been skeptical of cryptocurrencies, claiming they are neither tangible nor productive assets. It came at a time when the crypto industry was plagued with problems, from project failures to liquidity crises exacerbated by the collapse of one of the world’s leading exchanges, FTX.

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.

Read more about CNBC Pro tech and crypto

A high-profile 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-favorable pre-dilution”.

He cited two “interesting precedents” that could lead the United States to appropriate action.beginningChina 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 in new common stock, and maintained this ban for about 100 years, Munger said.

“What should the U.S. do after the cryptocurrency ban is implemented? Thanks for the great example,” Munger said.

(Read the full article in the journal here.)

https://www.cnbc.com/2023/02/02/charlie-munger-us-should-ban-cryptocurrencies.html Berkshire’s Munger Says U.S. Should Ban Cryptocurrencies

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