“A cryptocurrency is not a currency, not a commodity, and not a security. Instead, it’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity. Obviously, the U.S. should now enact a new federal law that prevents this from happening.”

The partner in crime of Warren Buffet has spoken... again. Charlie Munger, the 99 years old billionaire reiterates his hate for Bitcoin, and he even asked in a tweet recently that the federal government of the US should ban Bitcoin. So, who is Charlie Munger, again?

Charlie Munger is an American businessman, investor, and philanthropist. He is best known for being the Vice Chairman of Berkshire Hathaway, a multinational conglomerate holding company based in Omaha, Nebraska.

Munger has been a long-time business partner of Warren Buffett and is widely regarded as one of the most successful investors of all time. Over the years, Munger has made a number of controversial statements regarding cryptocurrencies, particularly Bitcoin, and has expressed skepticism about the technology and its potential as an investment.

Hmm, I guess the dinosaurs never learn. Munger, same as Buffet, despite being some of the best businessmen in the world of all time refuse to see past their knowledge and capacity of understanding new technologies. In his recent affirmations regarding Bitcoin, he praised China for taking a wise stance on decentralized blockchain technology and "banning Bitcoin".

Little did Charlie know when he put out that statement on Twitter that despite the ban in China, something like 25% of the hashing power of Bitcoin still comes out of China. Yes, the communist party ordered Bitcoin miners to be kicked out of the country, back in 2021, but not all of them actually did that. Probably just the large mining pools migrated to other continents as they would have been easier to be found.

I'm not going to dive into how Munger built his wealth but my gut feeling tells me that he's part of the elites and that he's probably the type who's a CBDC advocate. There's a lot of talk about Central Bank Digital Currencies (CBDCs) and the rise of decentralized blockchain technology and cryptocurrency, but the main mistake both journalists and businessmen do when tackling such topics are to mix the two of them.

CBDCS can't compete with decentralized blockchain technology and cryptocurrency, despite the associations that some are making between the two. Essentially, a CBDC is a digital currency that's issued and backed by a central bank which means that it can be controlled by its users, and thus programmable.

Whilst Bitcoin is "an open for all" network where no external authority has the ability to intervene and/or censor any transaction, or even worse "freeze any wallet". If Bitcoin would act as such(the CBDC way), Charlie Munger would love it, I tell you for sure. He's a man of the system and that's why he hates Bitcoin. Because the system hates Bitcoin.

However, for unknown reasons to myself, America has made it clear through Jerome Powel, quite recently, that it has no intention at all of banning Bitcoin. As a matter of fact, I believe that if they would try that it would only help the Bitcoin network become "more decentralized" and Bitcoin as a currency get more mainstream.

Governments have lost a lot of trust over the past couple of years and such a ban on Bitcoin or even a try of doing that, coming from the federal law of the US would only push Americans more towards such a digital currency. It would also act as the perfect nail in the coffin for a potential digital dollar(CBDC) that might be on the pipe right now. What do you think?

Thanks for your attention,
Adrian