The US should follow China’s lead and ban cryptocurrencies. About this in the author’s article for Wall Street Journal said Berkshire Hathaway Vice Chairman Charles Munger.
The investor linked the growth of digital assets to a regulatory gap. According to an associate of Warren Buffett, they cannot be attributed to currencies, commodities or securities.
“This is a gambling contract with an almost 100% house edge. He appeals to a country where only individual states compete in this weakness. The United States must pass a new federal law that should put a barrier to cryptocurrencies, ” he wrote.
According to the top manager, two precedents can push “reasonable actions” – the ban on cryptocurrencies by China and the decisions of the British authorities in the 18th century. Then Parliament banned the issue of new shares for the next hundred years in response to the depression in those years.
In the first case, the authorities of the Celestial Empire “wisely came to the conclusion that cryptocurrencies will do more harm than good.” In the second, the decision created the prerequisites for Age of Enlightenment And industrial revolution.
In December 2021, Munger said that the Chinese authorities made the right decision by banning cryptocurrencies and related activities.
Earlier, the vice chairman of the board of directors of Berkshire Hathaway compared Tesla and bitcoin to “lice and fleas”, and also questioned the ability of digital gold to “become the global means of payment.”
In 2022, Charles Munger called cryptocurrencies “an investment in nothing” and likened digital assets to “venereal disease.”
Recall that at the end of last year, the US Senate allowed the possibility of banning cryptocurrencies. Their opponents cited the collapse of FTX as justification.
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