Charlie Munger: Crypto Gambling

Meaning of Charlie Munger Money Quote: saying Crypto is not a currency, it is a gambling contract with 100% favor for the house. Charlie Munger said:
 

 

“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” — Charlie Munger

Charlie Munger considers cryptocurrency gambling rather than a currency for a few key reasons. He believes that unlike traditional currencies which are backed by governments, cryptocurrencies have no intrinsic value and their price is determined purely by speculation. Since the value can fluctuate wildly based on market sentiment, Munger sees it as similar to betting on an unpredictable asset.

He also argues that the structure of cryptocurrency favors those who trade it like a commodity over long-term users, since new coins are often released which dilutes the value of existing holdings. While cryptocurrency proponents view it as a new kind of currency, Munger takes the stance that it lacks the stability and purpose of a normal currency.

Birthday: January 1, 1924 – Death: November 28, 2023

Basil Seggos: Cryptocurrency Gas

Basil Seggos Money Quote saying as New York State Environmental Commissioner that decommissioned power plants converting to power crypto-mining operations is fueling greenhouse gas emissions. Basil Seggos said:
 

 

“New York state is leading on climate change, and we have some major concerns about the role cryptocurrency mining may play in generating additional greenhouse gas emissions” — Basil Seggos

Cryptocurrency mining requires a large amount of energy to power the specialized computers that process transactions and add new blocks to the blockchain. This energy is often provided by power plants that burn fossil fuels like coal and natural gas. The combustion of these fuels releases greenhouse gases like carbon dioxide into the atmosphere, contributing to climate change.

Some cryptocurrency mining operations also use power sources like diesel generators that directly emit greenhouse gases. As more computing power is required for mining, it leads to greater energy usage and associated emissions from fossil fuel power sources.

Eric Adams: Paychecks in Bitcoin

Eric Adams Money Quote saying as Mayor elect of NYC that he’d make Fintech and Bitcoin important parts of financial markets in New York. Eric Adams said:
 

 

“In New York we always go big, so I’m going to take my first THREE paychecks in Bitcoin when I become mayor. NYC is going to be the center of the cryptocurrency industry and other fast-growing, innovative industries! Just wait!” — Eric Adams

In this quote, Eric Adams seems to be enthusiastically expressing his vision for New York City becoming a leader in the cryptocurrency and other emerging innovative industries during his mayoral administration. Specifically:

• Adams states that as mayor, he plans to take his first “THREE paychecks” in Bitcoin, suggesting he wants to personally demonstrate confidence in cryptocurrency.
• He implies that by embracing Bitcoin, the largest city in the U.S. can set an example for other major global hubs to increasingly adopt digital assets.
• Adams directly says his goal is for NYC to become “the center of the cryptocurrency industry”, hoping to attract related businesses, jobs and economic activity.
• He also wants to cultivate other fast-growing sectors like technology and suggests the city will thrive under his leadership, telling observers to “just wait!” and see the results.

The best interpretation is that Adams aims to establish New York as a global leader and epicenter for cryptocurrencies as well as innovative industries through both symbolic gestures and policies that create an attractive environment for these emerging fields according to his ambitious vision for the city expressed in this quote.

In New York we always go big, so I’m going to take my first THREE paychecks in Bitcoin when I become mayor. NYC is going to be the center of the cryptocurrency industry and other fast-growing, innovative industries! Just wait!

— Eric Adams (@ericadamsfornyc) November 4, 2021

Aaron Lasher: Monetize Cryptocurrency

Aaron Lasher Money Quote saying in response to Chase CEO, jamie Dimon that Bitcoin and cryptocurrency threatens profits of banks. Aaron Lasher said:
 

 

“Every dollar in cryptocurrency is another dollar in value that JPMorgan cannot monetize” — Aaron Lasher

In this quote, Aaron Lasher is referring to how the rise of cryptocurrency reduces the ability of large banks like JPMorgan to generate profits and “monetize” value. Cryptocurrencies operate outside of the traditional banking system, so every dollar that individuals invest in crypto assets is a dollar that is not deposited in a bank where it could be used to issue loans, earn interest, or be invested to generate returns for the bank.

By choosing cryptocurrencies over cash or bank deposits, consumers are effectively taking value away from the banking sector that normally benefits from holding people’s money. So Lasher is arguing that the growth of cryptocurrency as an alternative store of wealth represents lost opportunities for big banks like JPMorgan to turn those dollars into earnings and grow their businesses further.

Evgeny Kaspersky: Cryptocurrency Banned?

Evgeny Kaspersky Money Quotation saying regulation of cryptocurrency will not happen until it affects government control of revenue, then it will become illegal. Evgeny Kaspersky said:
 

 

I am more than sure that different countries will take turns to prohibit the use of cryptocurrency because they can’t control it. As long as they do not interfere, authorities won’t pay attention. Once [cryptocurrencies] begin to displace the national currencies – they will be immediately banned” — Evgeny Kaspersky

In this quote, Evgeny Kaspersky provides his perspective on how various governments may react to cryptocurrencies in the future. He believes that as long as cryptocurrencies do not directly challenge or displace national fiat currencies, most authorities will take a hands-off approach and not interfere with their use.

However, Kaspersky predicts that once cryptocurrencies start to significantly undermine government control over monetary systems and begin replacing official currencies, different countries will then sequentially ban them in turn.

His view suggests that while cryptocurrencies are still in their relative infancy, governments will tolerate them – but once they attain a scale where they diminish state power over currency, outright prohibitions will be swiftly enacted.

Kaspersky appears to be warning about potential crackdowns as cryptocurrencies grow in adoption and economic importance.