Nicely-known crypto skeptic and billionaire Charlie Munger is renewing his criticism of digital belongings, calling for US regulators to ban crypto.
In a brand new opinion piece revealed by The Wall Road Journal, the legendary investor says that crypto belongings are neither commodities, securities, or currencies, however relatively playing contracts that closely favor the home.
The Berkshire-Hathaway government goes on to name for US lawmakers to control digital belongings as playing.
“A cryptocurrency just isn’t a forex, not a commodity, and never a safety. As an alternative, it’s a playing contract with an almost 100% edge for the home, entered into a rustic the place playing contracts are historically regulated solely by states that compete in laxity.
Clearly, the US ought to now enact a brand new federal regulation that stops this from occurring.”
In accordance with Munger, it additionally is perhaps useful for the US to think about a ban on crypto belongings, very similar to China did final yr.
“The communist authorities of China just lately banned cryptocurrencies as a result of it correctly concluded that they would offer extra hurt than profit…
What ought to the US do after a ban of cryptocurrencies is in place? Nicely, yet one more motion may make sense: Thank the Chinese language communist chief for his splendid instance of unusual sense.”
In November, Munger referred to the digital asset trade as a mixture of delusion and fraud. On the time, he mentioned that crypto belongings are ruining the repute of the monetary markets by interesting to criminals.
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