Munger Protégé Li Lu Calls Crypto “Fundamentally Bogus” and Predicts Its Demise
Li Lu, a Charlie Munger protégé and Himalaya Capital founder, calls crypto essentially bogus and expects it to vanish. He informed a New York worth investing luncheon that society can be higher off banning it.
Li Lu, founder and chairman of Himalaya Capital, an funding agency, was an early investor in Chinese carmaker BYD. Still, he referred to as gathering crypto a private desire, very like valuing a sure artist’s work.
Why Does Li Lu Say Crypto Fails as Money?
Li Lu spoke on October 5 on the thirty sixth Annual Graham & Dodd Luncheon in New York. Columbia Business School professor Tano Santos moderated the hearth chat.
An viewers member requested about crypto within the context of worldwide monetary circumstances.
“I don’t suppose something of it. I believe finally it would disappear by itself, and that’s okay, as a result of it’s essentially bogus.”
He argued {that a} foreign money wants an enforcement mechanism to work as settlement or a retailer of wealth. A undertaking began by a number of people can’t present that, he mentioned.
Earlier within the discuss, Li Lu outlined wealth as a share of worldwide buying energy, not gold, diamonds, or currencies. He didn’t hyperlink that time to crypto.
Li Lu additionally mentioned crypto helps criminals and facilitates illicit transactions. On regulation, he went additional.
“I believe we’re all higher off banning it, however that’s okay.”
Li Lu,
Does Munger’s Camp Still Set the Tone for Wall Street?
Historically, Munger and Warren Buffett have been critics of Bitcoin (BTC). Berkshire Hathaway’s anti-Bitcoin stance seems intact beneath new CEO Greg Abel, who has prevented public touch upon crypto.
However, VanEck’s head of digital belongings analysis, Matthew Sigel, argued in 2025 that critics hold underestimating Bitcoin. His Bitcoin Hall of Shame rating named Munger and Buffett amongst them.
The break up now runs by way of finance itself. Li Lu, in distinction, rejects crypto as a retailer of wealth, whereas Sigel argues critics hold dropping the argument.
Meanwhile, spot Bitcoin exchange-traded funds (ETFs) have drawn billions of {dollars} in inflows since 2024.
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