Scriptonite Daily

Charlie Munger Advises US Government to Permanently Ban Crypto

According to data statistic shared by crypto blog BitTirbute.com Charlie Munger, Vice Chairman of Berkshire Hathaway, was seen advising the US Government to forever ban digital currencies forthwith.

He opined that ‘one thing which the US should learn from China is how to eternally ban digital currencies’.

These were the suggestions of Warren Buffet’s blue-eyed boy, Munger, which he expressed in his latest opinion piece for Wall Street Journal.

The said opinion was published by Wall Street in its Wednesday’s edition under the heading “Why America Should Ban Crypto”.

Munger’s Description of Digital Currencies

Vice Chairman of Berkshire Hathaway opined that ‘in no manner whatsoever a digital currency be regarded or seen as a currency.

He also opined that ‘so-called digital currencies are neither commodities nor securities nor can they come even close to commodities or securities’.

Instead he suggested that cryptocurrencies can at best be classified as ‘contract for gambl*ng’ wherein upper hand is of the house always.

He therefore suggested that Government in USA needs to take appropriate steps for immediately implementing a policy which guarantees banning of cryptocurrencies.

How to Implement the Ban

Munger then recommended in his opinion piece at least two possible ways through which the US can effectively implement the ban.

The first suggestion he gave required the US Government to replicate China’s approach in dealing with digital currencies.

He emphasized that China took timely measures in realizing that instead of doing any good, crypto would cause enormous harm.

Munger asserted that China soon became aware of the fact that cryptocurrencies pose grave danger to economic well-being and national security.

In the second recommendation, he reminded the history of England which dated back to the 1700 period. He reminded that at that time UK went into deep frustration at the failure of a highly speculative trading venture.

Consequently, the UK was forced into banning the trading of speculative stocks for the next hundred years. Thereafter, the UK managed to completely overhaul its industrial sector by revolutionizing the industry as a result of which America was born.

Munger’s Final Nail in The Coffin

At the end of his opinion, Munger concluded that in case the US decides to ban digital currencies, then there would be consequences. He advised that US Government should prepare itself beforehand prior to implementing the ban.

For dealing with post-ban circumstances, he advised that the US should look at China and see how China’s communist leaders dealt with them.

He insisted that at least American leaders are more sensible than the leaders in China.

Munger’s Hatred towards Cryptocurrencies

Munger is widely known, and in fact quite infamous, amongst the global crypto community as a Bitcoin hater. Very often, he had regarded digital asset trading as ‘trading turds’.

Last year he remarked at an occasion that ‘he’d wished digital currencies would have never been born’.

In his latest opinion, where he declared that ‘digital currencies are neither commodities nor securities, he made a direct reference to Bitcoin.

It is widely accepted that Bitcoin is a commodity which fact has been further upheld by the US Securities & Exchange Commission.

It was in this context that he advised US Government to immediately ban Bitcoin last year as being a ‘venereal disease’.

Since he is one of the most influential figures in the US, his opinion carries weight. However, whether his opinion is worthy of taking, only the US Government can tell.