Being an established cryptocurrency skeptic, as well as aligning his views with one of China’s on cryptocurrencies, Charlie Munger, the Vice Chairman of Berkshire Hathaway, publicly shared his concerns in the Wall Street Journal released on February 1st, 2023, regarding the lack of regulation, and how crypto-assets do not belong into the categories of currencies and commodities, as well as not having an overseeing entity.
Munger emphasized the need for federal regulation of cryptocurrencies after comparing Bitcoin to gambling:
“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.”
The publicly available skeptical position of 99-year-old Munger has been well-promoted in recent years. In some, he referred to those who invest in crypto, especially Bitcoin as “almost insane.” He also spoke about Bitcoin's success as “disgusting” and pointed out that crypto assets were used by extortionists and kidnappers.
Munger’s ideas are shared by the Chairman of Berkshire Hathaway, Warren Buffer, who has shared that he would not buy all the Bitcoin in the world, even if it was worth 25 USD. In addition to that, Munger has gone as far as saying that he wished that crypto had never been invented.
The attention gathered around the combined views of two of the financial world’s leaders is massive, especially when some people view it as disruptive and potentially dangerous to the markets.
The recent calls from Munger for a federal ban on crypto assets in the U.S. have once again brought up the topic of regulation and oversight of cryptocurrencies. However, although their opinions may be controversial, they are more likely to help the conversation.