Charlie Munger advocates for a ban on bitcoin and other crypto-currencies, arguing that the recent proliferation of privately issued crypto-currencies has led to a lack of regulation and a disregard for consumer protection.
In a recent article published by the Wall Street Journal, Charlie Munger, vice president of Omaha-based multinational conglomerate holding company Berkshire Hathaway, argues that the United States should impose a federal ban on crypto-currencies.
Charlie Munger believes that a crypto-currency is just a “gambling contract,” refusing to recognize digital assets as securities or commodities and complaining about the lack of investor protection.
Warren Buffett’s right-hand man suggests that the U.S. should follow China’s lead in banning crypto-currencies.
Charlie Munger also cites England’s response to a depression in the early 1700s as another precedent for a general ban on digital assets.
In response to a promotional scheme that led to a depression, the English Parliament banned all public trading in new common stock. This ban remained in effect for about 100 years, and Charlie Munger argues that it was during this period that England made the greatest national contribution to Lights and the Industrial Revolution, and that it also gave rise to the United States.
Charlie Munger concluded his opinion piece by calling for the United States to follow the “splendid example of common sense” of the Chinese communist leader and to ban crypto-currencies to prevent further damage to the public.
Charlie Munger has been one of bitcoin’s harshest critics. Last year, he predicted that the flagship crypto-currency would likely fall to zero. In the past, the prominent investor has also compared the crypto to “a venereal disease” and a louse.