Charlie Munger, chief aide to Berkshire Hathaway owner Warren Buffett, laments that US private companies have issued thousands of new cryptocurrencies lately. They are openly sold without prior regulatory approval and without proper disclosure.. In some cases, crypto assets are given to their promoters for free, after which the public buys them at an inflated rate, Munger is outraged.. He called it “wild capitalism” that develops due to large gaps in regulation.
“Cryptocurrencies are not currencies, not goods and not securities. This is a gambling treaty with an almost 100% house edge in a country where gambling treaties are traditionally regulated only by states competing in weakness. Clearly the US needs to pass a new federal law that would ban cryptocurrencies,” Munger wrote in the Wall Street Journal.
The head of Berkshire Hathaway also mentioned the reaction of the British government to the economic crisis in the early 1700s, when the country stopped making big profits by using slow sailing ships to trade with countries from the other side of the world.. The English Parliament banned all public trading in new ordinary shares, and this ban lasted for about 100 years.. Munger argues that during this time England made the greatest contribution to the education and industrial revolution of the country.
At the end of his article, the economist also pointed to the ban on cryptocurrencies in China, considering this decision of the communist country to be reasonable, which he spoke about back in 2021.. Munger urged the US to follow China's lead and ban cryptocurrencies to prevent further harm to society.
Munger recently said that he hates people who promote bitcoin, as even a 12-year-old teenager can get rich with the help of cryptocurrencies.