The crypto community has ridiculed the well-known critic of Bitcoin (BTC), Charlie Munger, Vice President of Berkshire Hathaway, for calling on the United States to follow in China’s footsteps and prohibit the general use of cryptocurrencies.
In an op-ed in The Wall Street Journal, the 99-year-old investor lashed out at cryptocurrency again, calling it a “nearly 100% house edge betting contract.”
Munger also said that a cryptoactive “is not a currency, nor a commodity, nor a value”, and added that “obviously” the US should enact a new federal law banning them in the US.
According to Munger, the best way to approach cryptocurrencies is to follow the example of China, which completely banned cryptocurrencies in September 2021. The vice president of Berkshire Hathaway stated:
“What should the US do after the cryptocurrency ban? Well, one more action might make sense: Thank the Chinese communist leader for his splendid example of uncommon sense.”
The community was quick to react to Munger’s latest anti-crypto arguments, with many expressing puzzlement over how measures like China’s cryptocurrency ban stacked up against US proclamations that it supports freedom.
“The battle lines are being drawn. Freedom or tyranny. Non-custodial wallets are the front we cannot lose,” wrote on Twitter, Adam McBride, author of NFT APE.
Others also mocked Munger for not understanding that cryptocurrencies are virtually impossible to ban. In fact, even after “banning” crypto in 2021, China has remained the second largest Bitcoin miner in the world, and possession of cryptocurrencies apparently remains legal. Also, the idea of lifting the ban on cryptocurrencies has been floating around in China for a while.
It’s sad that Charlie Munger believes he’s doing something by calling for a ban. He doesn’t understand it’s math and can’t be banned. Old age deteriorates critical thinking skills.
—941 (@level941) February 2, 2023
Since Munger called cryptocurrency a “gambling contract,” it should be noted that gambling is legal under US federal law, even though people lose a lot of money doing it.
According to data from the American Gaming Association, mobile gaming applications and casinos in the United States reached a record $54.93 billion in revenue during the first 11 months of 2022. The revenue came at the cost of Americans losing more money gambling than ever before in the first quarter of 2022.
Many European countries also allow at least some betting. Some 420,000 British gamblers lose more than $2,000 a year.
Despite the fact that casinos cause significant losses for investors, Europe and the United States have not followed in the footsteps of China, which banned most forms of gambling in 1949.
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