Berkshire Hathaway (NYSE: BRK.A) Vice Chairman, Charlie Munger, has made headlines once again with his recent call for a federal ban on cryptocurrencies in the United States.
Munger, who has been a long-standing skeptic of cryptocurrencies, aligning his views with China’s stance on cryptocurrencies, expressed his views in an opinion piece in the Wall Street Journal published on February 1.
In his piece, Munger attributed the rise of cryptocurrencies to a gap in regulation. He argued that crypto assets do not fall under the categories of currencies, commodities, or securities, leaving them without proper oversight.
In particular, Munger referred to cryptocurrencies such as Bitcoin as: “gambling contracts 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,” further emphasizing the need for a federal law.
Munger a known crypto skeptic
Munger’s views on cryptocurrencies have been well-publicized in recent years. The 99-year-old doubled down on his skeptical stance, referring to those who invest in Bitcoin as ‘almost insane.’ He also referred to Bitcoin’s relative success at the time as “disgusting” and alluded to the use of crypto by kidnappers and extortionists.
Berkshire Hathaway Chairman Warren Buffett, also known as the “Oracle of Omaha,” has echoed Munger’s stance on cryptocurrencies. Both Munger and Buffett have been critical of cryptocurrencies in the past, with Munger even going as far as to say that he wished crypto had “never been invented,” and Buffett admitting he wouldn’t buy all the Bitcoin in the world for $25.
Their combined influence as leaders in the financial world has garnered significant attention for their views on cryptocurrencies, which some view as a disruptive technology with the potential to change the financial landscape.
Munger’s recent call for a federal ban on cryptocurrencies in the United States has once again brought the topic to the forefront of the financial world’s attention. Munger’s views and those of Warren Buffett bring further to light the discussion for proper regulation and oversight of cryptocurrencies. Their opinions, though controversial, will likely continue to shape the conversation surrounding cryptocurrencies.