The cryptocurrency community has mocked Charlie Munger, the vice chairman of Berkshire Hathaway known for criticizing Bitcoin (BTC), for suggesting that the United States should emulate China and ban cryptocurrencies.
In an op-ed for The Wall Street Journal, the 99-year-old investment guru once again denounced crypto, describing it as a “gambling contract heavily favoring the house.” He emphasized that crypto is neither a currency, commodity, nor security, and urged the U.S. to introduce a federal law banning it.
Munger praised China’s blanket ban on crypto in September 2021 and suggested that the U.S. follow suit. He even went as far as to suggest thanking the Chinese leader for setting an example of “uncommon sense.”
The reaction from the community was swift, with many questioning how restrictions like China’s ban align with America’s commitment to freedom. Author Adam McBride, known as NFT APE, highlighted the importance of protecting non-custodial wallets as a symbol of freedom.
Critics pointed out Munger’s lack of understanding that crypto is challenging to ban. Despite China’s purported ban, the country remains a significant player in Bitcoin mining and crypto ownership is still permitted. There have also been discussions about potentially lifting the ban in China.
It’s sad that Charlie Munger believes he’s doing something by calling for a ban. Doesn’t understand it’s math and can’t be banned. Old age deteriorates critical thinking skills.
— 941 (@level941) February 2, 2023
Munger’s comparison of crypto to gambling is intriguing, considering that gambling is legal under U.S. federal law despite its risks. Data from the American Gaming Association shows record revenues from casinos and mobile gaming apps in the U.S., indicating significant financial losses among gamblers.
While European countries permit some forms of gambling, they have not adopted China’s strict ban imposed in 1949. The disparity in approaches towards gambling and crypto regulation between regions is evident.
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