Li Lu Declares Crypto “Fundamentally Bogus” and Advocates for Its Ban at New York Luncheon

Li Lu Declares Crypto “Fundamentally Bogus,” Advocates for a Ban

New York, NY — In a bold statement that has sent ripples through the financial community, Li Lu, a prominent investor and protégé of Charlie Munger, declared that cryptocurrency is “fundamentally bogus” and predicted its eventual disappearance. Speaking at the 36th Annual Graham & Dodd Luncheon in New York, Lu argued that society would be better off without it.

Lu, the founder and chairman of Himalaya Capital, made headlines for his critical stance on crypto during a fireside chat moderated by Columbia Business School professor Tano Santos. When an audience member inquired about the role of cryptocurrency in today’s global financial landscape, Lu responded bluntly: “I don’t think anything of it. I think eventually it will disappear on its own, and that’s okay, because it’s fundamentally bogus.”

The Case Against Crypto

Lu emphasized that for a currency to function effectively as a medium of exchange or a store of wealth, it requires an enforcement mechanism—something he believes cryptocurrencies lack. “A project started by a few individuals cannot provide that,” he stated, underscoring his skepticism about the decentralized nature of digital currencies.

He further elaborated on his views, describing wealth as a share of global purchasing power rather than being tied to gold, diamonds, or traditional currencies. While he did not directly link this perspective to cryptocurrencies, it highlights his broader critique of their value proposition.

A Call for Regulation

In a striking assertion, Lu suggested that cryptocurrencies facilitate criminal activities and illicit transactions. He went so far as to say, “I think we’re all better off banning it, but that’s okay.” His comments reflect a growing sentiment among some investors and regulators who are increasingly concerned about the potential misuse of digital currencies.

The Munger Legacy

Lu’s remarks echo the long-standing skepticism of cryptocurrencies held by Munger and his business partner, Warren Buffett. Historically, both have been vocal critics of Bitcoin, and this stance appears to remain intact under Berkshire Hathaway’s new CEO, Greg Abel, who has largely avoided public commentary on the subject.

However, the financial landscape is not monolithic. Matthew Sigel, head of digital assets research at VanEck, has argued that critics like Munger and Buffett consistently underestimate Bitcoin’s potential. In a 2025 ranking, he placed them in his “Bitcoin Hall of Shame,” suggesting that the debate over cryptocurrency’s legitimacy is far from settled.

A Divided Financial Community

The divide over cryptocurrency is palpable within the finance sector. While Lu firmly rejects crypto as a viable store of wealth, advocates like Sigel argue that critics are losing ground in the ongoing debate. Meanwhile, the rise of spot Bitcoin exchange-traded funds (ETFs) has attracted billions in investments since 2024, indicating a growing acceptance of digital assets among mainstream investors.

As the conversation around cryptocurrency continues to evolve, Lu’s stark warnings serve as a reminder of the complexities and controversies that define this rapidly changing financial landscape. Whether his predictions will come to fruition remains to be seen, but one thing is clear: the debate over the future of crypto is far from over.