The cryptocurrency community has mocked the well-known Bitcoin
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Critic Charlie Munger, vice president of Berkshire Hathaway, for calling on the US to follow in the footsteps of China and ban cryptocurrency.
In an op-ed in The Wall Street Journal, the 99-year-old investment veteran once again blasted cryptocurrency, calling cryptocurrency “a gambling contract with close to 100% house edge.”
Munger also said that cryptocurrency is “not a currency, not a commodity, not a security,” adding that it is “clear” that the United States should enact a new federal law banning cryptocurrencies.
According to Munger, the best way to deal with cryptocurrency is to follow the example of China, which imposed a blanket ban on cryptocurrency in September 2021. The vice president of Berkshire Hathaway stated:
“What should the US do after a cryptocurrency ban? Well, another measure might make sense: I thank the Chinese Communist leader for his fine example of uncommon sense.”
The community has been quick to respond to Munger’s latest anti-crypto argument, with many expressing bewilderment at how measures such as banning cryptocurrency in China stack up with US statements that it supports freedom.
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Battle lines are drawn. freedom or tyranny. “Unguarded wallets are the hill we just can’t give up on,” Adam McBride, author of NFT APE, wrote on Twitter.
Others have also mocked Munger for not understanding that cryptocurrencies are almost unportable. In fact, even after cryptocurrency was “banned” in 2021, China continued to be the second largest bitcoin miner in the world, and cryptocurrency possession still appeared to be legal. Moreover, the idea of unbanning cryptocurrencies has been floating around in China for a while now.
Given that Munger described cryptocurrency as a “gambling contract,” it is worth noting that gambling is legal under US federal law, even though people lose significant amounts of money on it.
Related: EU lawmakers vote on more restrictive capital requirements for banks holding cryptocurrency
According to data from the American Gaming Association, US casinos and mobile gaming apps generated a record $54.93 billion in revenue during the first 11 months of 2022. The revenue came at the expense of Americans losing more gambling money than ever before by the first quarter. 2022.
Many European countries also allow at least some gambling, with around 420,000 British gamblers losing more than $2,000 a year.
Although casinos caused huge losses to investors, Europe and the United States did not follow in the footsteps of China, which outlawed most forms of gambling in 1949.
