The Vice Chairman of Berkshire Hathaway, Charlie Munger, published an article in the Wall Street Journal, claiming crypto is not currency, but rather a gambling contract.
Charlie Munger calls for a crypto ban
Bitcoin critic, Charlie Munger, has urged the United States to prohibit Bitcoin and other cryptocurrencies like China and several other countries did. This happens on a regular basis, whether crypto markets are doing well or not.
It’s 2023 and crypto is still misunderstood, despite having hundreds of millions of users. That’s not even the first time Charlie Munger or Warren Buffett publicly criticized Bitcoin.
However, it always manages to rise from ashes. Munger went on explaining cryptocurrency is not a currency, commodity, or security.
“Instead, it’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity. The U.S. should now enact a new federal law that prevents this from happening,” Munger wrote.
He’s right. Cryptocurrency is not a commodity or other of those things. Crypto is crypto. That’s the way it should be. Moreover, the ban actually wouldn’t change a lot since crypto is mostly used in a private and anonymous way.
My personal opinion
While China and the US are the largest two economies in the world, these countries are very different from each other. China tries to look modern and capitalistic, but it’s the same communistic country that tries to control everything.
On the other hand, the US is totally a capitalistic country, looking for investment opportunities at all costs. A country like the US is probably never going to ban crypto as would be bad for business. Instead, some regulations along with taxes might come into place.