Cryptocurrency is a modern phenomenon that has captured the hearts of many people within the gambling industry and beyond. However, recent events have disheartened many crypto enthusiasts and now not everyone is convinced of the potential of cryptocurrency and blockchain technology. Billionaire Charlie Munger for one definitely isn’t.
Munger Says Crypto Is “Worthless Shit”
During the annual shareholder meeting of the Daily Journal Corporation, which he directs, Munger slammed crypto, claiming it is useless. His harsh words add extra insult to injury to all the cryptocurrency investors who have been struggling with problems in 2022.
Munger, now 99, spoke with CNBC journalist Becky Quick during a livestream of the meeting. He told her that he jokingly likes to call cryptocurrencies “crappo” or “crypto shit” as he doesn’t believe they have any real value. In addition, Munger slammed crypto as nothing short of gambling.
It’s totally absolutely crazy, stupid gambling.
Munger went as far as saying that he feels ashamed that the United States even allows “this crap.” Munger also blasted crypto enthusiasts, claiming that they are idiots. He emphasized that he believes there is no rational argument against his position.
The Downfall of Crypto
Munger’s words echo the opinion of many people who have come to believe that cryptocurrency is a speculative mania and the crypto industry is full of crooks, Bankrate reporter James Royal told CNBC. The news outlet added that only 8% of Americans trust crypto, as outlined in the CNBC All-America Economic Survey from November 2022.
Munger has been actively promoting the ban of cryptocurrencies and, in the wake of the FTX scam it is likely that the crypto industry would be severely regulated. The US Securities and Exchange Commission is already considering extra laws for crypto companies. According to a recent proposal, crypto exchanges might be required to hold their assets with a federal or state-chartered bank.
This may spell the definitive end of crypto as Americans know it since many banks might not be willing to act as custodians. According to SEC commissioner Mark Uyeda, the majority of banks are now aware of the dangers of the crypto sector and that dealing with cryptocurrencies might compromise their business, exposing them to fraud.
In other words, an adviser may custody crypto assets at a bank, but banks are cautioned by their regulators not to custody crypto assets.
Uyeda noted that this would put crypto companies in a “no-win” position.
It is a stretch to say that crypto is useless. Digital currencies provide customers with speed and flexibility that traditional banking cannot match. Unfortunately, crypto companies would need to put in a lot of extra work to regain the public trust that FTX shattered.