The cryptocurrency community has ridiculed well-known Bitcoin (BTC) critic Charlie Munger for calling the United States to follow in the footsteps of China in banning crypto.
In an op-ed article on The Wall Street Journal, the 99-year-old investment veteran has once again slammed crypto, calling a cryptocurrency a “gambling contract with a nearly 100% edge for the house.”
Munger also said that a cryptocurrency is “not a currency, not a commodity, and not a security,” adding that “obviously” the U.S. should now enact a new federal law that would ban crypto.
According to Munger, the best way to approach crypto would be to follow the example of China, which put a blanket ban on crypto in September 2021. The Berkshire Hathaway chairman stated:
“What should the U.S. do after a ban of cryptocurrencies is in place? Well, one more action might make sense: Thank the Chinese communist leader for his splendid example of uncommon sense.”
The community was quick to react to Munger’s latest anti-crypto arguments, with many expressing bewilderment about how China’s tyrannic measures like crypto ban align with the U.S. principles of freedom.
“The battle lines are being drawn. Freedom or tyranny. Non-custodial wallets are the hill we can’t surrender,” NFT APE author Adam McBride wrote on Twitter.
Others also mocked Munger for not being able to understand that crypto is virtually unbannable. Indeed, even after “banning” crypto in 2021, China has continued to be the second largest Bitcoin miner in the world for some reason, while possession of crypto is apparently still legal in the country. Moreover, the idea of lifting the crypto ban has been floating in China for a while.
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
As Munger called cryptocurrency a “gambling contract,” it’s worth noting that gambling is legal under U.S. federal law despite people losing significant money on it.
According to data from the American Gaming Association, U.S. casinos and mobile gaming apps hit a record $54.93 billion in revenue during the first 11 months of 2022. The revenues came at the cost of Americans losing more money on gambling than ever before by the first quarter of 2022.
Many European countries also allow at least some gambling games, with about 420,000 British gamblers losing more than $2,000 per year.
Despite casinos causing significant losses for investors, Europe and the U.S. for some reason did follow in the footsteps of China, which banned gambling back in 1949.