Himalaya Capital founder and chairman Li Lu, a protégé of the late Charlie Munger, has dismissed cryptocurrency as "fundamentally bogus" and predicted the entire asset class will eventually vanish on its own.
Absence of Enforcement and Utility
During a fireside chat moderated by Columbia Business School professor Tano Santos at the 36th Annual Graham & Dodd Luncheon in New York on October 5, Li Lu delivered a sharp critique of digital assets when asked about crypto within global financial conditions. The early BYD investor argued that functional currencies require an institutional enforcement mechanism for settlement and storing value—something a project started by a few individuals cannot offer.
"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," Li Lu stated. He further noted that collecting crypto resembles a personal preference similar to valuing specific artwork, adding that digital tokens primarily assist criminals and facilitate illicit transactions. Addressing regulatory intervention, he added, "I think we're all better off banning it, but that's okay."
Wall Street Divide Over Bitcoin's Future
Li Lu’s comments mirror the long-standing skepticism of value investing icons like Warren Buffett and Charlie Munger. While Berkshire Hathaway CEO Greg Abel has refrained from public commentary on crypto, the broader financial industry remains deeply divided. Critics like Li Lu continue to dismiss crypto's monetary status even as Wall Street institutions push for broader adoption, as seen when BlackRock filed for a buffered Bitcoin ETF and JPMorgan modeled long-term annualized returns for Bitcoin.
Conversely, industry proponents such as Matthew Sigel, head of digital assets research at VanEck, argued in 2025 that traditional finance critics consistently underestimate Bitcoin (BTC), pointing to the billions of dollars that spot Bitcoin ETFs have attracted since launching in 2024.
Key Takeaways
- Li Lu called crypto "fundamentally bogus" at the 36th Annual Graham & Dodd Luncheon on October 5.
- He argued currencies require enforcement mechanisms that private individual projects cannot provide.
- Li Lu advocated for a ban, citing crypto's role in facilitating illicit transactions.
- Institutional sentiment remains split, contrasting value-investing skepticism with massive spot Bitcoin ETF inflows since 2024.
Why It Matters
While traditional value investors rooted in Graham & Dodd methodology view cryptocurrency through a cash-flow and sovereign-backing lens, institutional market infrastructure has already moved far beyond theoretical debates. The persistent gap between value investing principles and institutional digital asset flows highlights an ongoing structural rift on Wall Street. As capital continues flowing into regulated spot products, moral and structural critiques from traditional finance figures may carry decreasing weight among modern portfolio managers.
