important point
- Berkshire Hathaway Vice Chairman Charlie Munger has called on the US to ban cryptocurrencies altogether.
- The 99-year-old has criticized the crypto industry for some of its predatory tokennomics practices.
- In 2021, Munger called cryptocurrencies “disgusting and against the interests of civilization.”
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99-year-old billionaire Charlie Munger believes private companies are using predatory tokennomics to release cryptocurrencies due to the lack of regulation in the crypto industry. He’s not wrong, but his solution to ban all cryptocurrencies in the US seems a bit drastic.
Following China’s “brilliant example”
Charlie Munger still doesn’t like ciphers.
99-year-old Berkshire Hathaway Vice Chairman I posted an article In the Wall Street Journal yesterday, he called on the US to ban cryptocurrencies altogether.
“Cryptocurrencies are not currencies, commodities, or securities. Instead, gambling with an edge of almost 100% of the house, concluded in countries where gambling contracts are traditionally regulated only by lazily competing states. The deal. He criticized crypto projects for pre-selling tokens to VCs and then only making a small portion of the token supply available to the public.
Citing the need for pre-approval of disclosures by governments before allowing private companies to issue new coins, Munger said, “There are gaps in regulation that continue to cause such a miserable excess.” claimed. He then urged the United States to follow China’s lead and simply ban cryptocurrencies, saying the country “should thank the Chinese Communist Party leaders.” [Xi Jinping] For a fine example of his extraordinary taste. ”
This isn’t the first time billionaires have spoken out about cryptocurrencies. In fact, the editorial may represent his Munger’s most rational criticism of the industry to date. Munger, May 2021 said He added that the asset class was “disgusting and contrary to the interests of civilization” and “does not welcome a currency that is very useful to kidnappers, blackmailers, etc.”
Warren Buffett, chairman and CEO of Berkshire Hathaway, Munger’s high-profile business partner, said: also expressed His skepticism of cryptography, albeit in softer terms. “idea [that Bitcoin] Some things of great intrinsic value are a joke in my view,” he claimed in a 2018 CNBC interview.
Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and several other crypto assets.