Both pro-crypto and anti-crypto lobbies have condemned China’s violent crackdown on cryptocurrency. It is a perfect example of an authoritarian country that can take power from people’s hands and invest it in the hands of a few. However, one leading investor who is also a billionaire has come out in support of China’s decision. Berkshire Hathaway’s Charlie Munger spoke about cryptocurrencies and China at a recent virtual conference, and his comments were pretty shocking. However, people acquainted with Munger’s ideology and views would not be much surprised. In the past, he has attacked cryptocurrencies time and again. He has also called it a currency for extortionists and terrorists and said that the world would be a better place without cryptocurrencies. These statements, in isolation, are not as shocking as the latter part of his argument.
When asked about China and the way it is dealing with cryptocurrency, Munger said he fully supports the country’s policies and wishes other countries could do the same. While many entrepreneurs and investors have expressed apprehension about cryptocurrencies, nobody went on to say that China’s model should be followed. Munger is setting precedence here and raising a strong voice against cryptocurrencies.
There has been a historical trend in institutional figures speaking against crypto. Many believe that the intrinsic nature of cryptocurrencies is a threat to institutions. If Defi takes over these financial institutions, they would lose all their power and authority. While that may seem to be a distant probability, many people in positions of power are already losing sleep over the issue.