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“China was right to ban cryptocurrencies”, says billionaire and Warren Buffett partner Charlie Munger

Charlie Munger, a billionaire investor and vice president of Berkshire Hathaway, has again criticized cryptocurrencies such as bitcoin (BTC), while supporting China’s decision to ban much of the country’s crypto-related activity.

China was right to ban cryptocurrencies, says billionaire and Warren Buffett partner Charlie Munger

China was right to ban cryptocurrencies, says billionaire and Warren Buffett partner Charlie Munger

“The Chinese made the correct decision, which is to just simply ban them,” Munger said at the Sohn Hearts & Minds Investment conference in Sydney, according to the Australian Financial Review.

This year, China introduced a massive crackdown on the crypto industry, forcing large bitcoin mining operators out of the country.

Crypto trading and other activities related to cryptoactives have also been banned in China, resulting in a major shift in the global crypto environment.

Some of China’s recent policies have hit more traditional companies like Alibaba and Tencent, whose stock price has plummeted over the year.

Despite investor concerns, Munger believes China has acted “in a grown-up way.”

The billionaire explained that he wants to “make [his] money by selling people things that are good for them, not things that are bad for them.”

Munger even said he wished cryptoactives had never been invented and that the investment environment created by the emerging technology has reached extreme levels, comparing the industry to the dot-com craze of the 1990s.

“I think the dot-com boom was crazier in terms of valuations than even what we have now. But overall, I consider this era even crazier than the dot-com era,” he said.

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This isn’t the first time Munger has criticized cryptocurrencies.

This year, the 97-year-old tycoon admitted that he hates bitcoin and that “all the damned development is disgusting and contrary to the interests of civilization.”

Munger highlighted this approach in his most recent speech, saying that people who are investing in cryptocurrencies are not thinking about consumers, but only about themselves.

“Look at them. I didn’t want any of them to be part of my family,” he added.

While Munger’s views on crypto echo that of many lawmakers and traditional finance participants, Jerome Powell, chairman of the Federal Reserve, has revealed he has no intention of following China’s lead and banning cryptocurrencies.

A more appropriate approach, Powell said, would be to regulate specific areas of the industry, such as stablecoins, which he compared to bank deposits.

With informations: Decrypt

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