Charlie Munger condemns Bitcoin as ‘gambling’ and seeks to outlaw it in the United States

Charlie Munger, vice chairman of Berkshire Hathaway (NYSE: BRK.A), has once again made news with his latest proposal for a government ban on cryptocurrencies in the United States.

In an editorial post published on February 1 in the Wall Street Journal, Munger, who has been a longtime critic of cryptocurrencies, aligned his views with China’s position on cryptocurrencies.

In his article, Munger blamed the emergence of cryptocurrency on a regulatory vacuum. He contended that crypto-assets do not come within the classifications of currencies, commodities, or securities, leaving them unregulated.

In particular, Munger described cryptocurrencies such as Bitcoin as “gambling contracts with a nearly 100 percent advantage for the house, entered into in a society where gambling contracts are typically controlled exclusively by states competing in laxness,” highlighting the necessity for federal regulation.

In recent years, Munger’s opinions on cryptocurrencies have been widely reported. The 99-year-old man went down on his scepticism, describing Bitcoin investors as ‘nearly mad.’ He also referred to Bitcoin’s relative success at the time as “disgusting” and referenced kidnappers and extortionists using cryptocurrencies.

Buffett, often known as the “Oracle of Omaha,” has repeated Munger’s views on cryptocurrencies. Both Munger and Buffett have criticised cryptocurrencies in the past, with Munger stating that he hoped crypto had “never been conceived” and Buffett saying that he wouldn’t purchase all the Bitcoin in the world for $25.

Their opinions on cryptocurrencies, which some consider as a disruptive technology with the potential to alter the financial landscape, have gained substantial attention due to their combined power as financial industry experts.

Recent calls by Munger for a government ban on cryptocurrencies in the United States have pushed the issue back to the forefront of the financial world’s consciousness. The opinions of Munger and Warren Buffett provide more light on the need for adequate regulation and control of cryptocurrencies. Even if their beliefs are contentious, they will certainly continue to influence the discourse around cryptocurrency.

Also Read: Bitcoin surges past $24,000 as Fed head Powell discusses “deflation”