By George Ward
Veteran investor and current vice chairman of Berkshire Hathaway, Charlie Munger, has called for the total ban of cryptocurrency in the United States. The billionaire investor wants the US to follow in the footsteps of China to bar the use of digital assets, which he likened to “gambling contracts.”
In The Footsteps Of Warren Buffet
The seasoned investor revealed in a recent interview that cryptocurrency led to a gap in financial regulations because crypto assets cannot be defined as securities, commodities, or currencies. According to Munger, a cryptocurrency is a gambling contract giving the trading platforms an almost 100% edge over the consumers because the state does not regulate them like the traditional gambling houses.
As a result, the vice chairman has called on the United States to consider implementing new federal laws to prevent crypto exchanges from taking advantage of investors. Like his associate Warren Buffet, Munger has been a long-time crypto skeptic with the duo on numerous occasions, clamoring for the ban on digital assets across the US.
In 2021, during the peak of Bitcoin’s price rally, Munger was reported to have considered the relative success of BTC as “disgusting.” He indicates that kidnappers and organized crime groups have utilized the token to launder funds.
Furthermore, in 2022, the veteran investor labeled Bitcoin as an “investment in nothing” in his continued drive to belittle the largest crypto asset by market capitalization. Warren Buffet, known as the “Oracle of Omaha,” is also among the anti-crypto advocates within the traditional financial sector who see no use in creating digital currencies.
In one of his attacks on the industry, Buffet is reported to have said that he wished that crypto assets were never “invented” due to the rising adoption rate of virtual currencies in the United States and some parts of the world.
“The Berkshire Boys,” as Buffet and Munger are often called, have not invested a single dollar into cryptocurrency. Still, the reality is that they cannot avoid the fledgling industry forever.
Crypto For The Long-Term
In a February 2022 interview, Buffet’s righthand man disclosed that he wants the crypto industry to be regulated out of business. Still, he later admitted that digital assets are here to stay long-term.
However, from a broader perspective, the opinions of the two experienced investors point to something more profound about crypto and its impact on the conventional financial system. Crypto is widely regarded as a disrupter in the financial sector.
However, the past few years have seen firms, previously crypto-skeptics, beginning to roll out digital assets-based services for clients. One such example of a prominent institutional player that now offers crypto services is JP Morgan.
The investment banking giant has already launched its crypto services targeted at wealthy investors despite the initial opposition of the bank’s CEO, Jamie Dimon. Meanwhile, it remains to be seen whether the Berkshire Boys will announce their crypto product or invest in the industry in the future.