Li Lu, founder of Himalaya Capital and a protégé of Charlie Munger, recently shared his negative outlook on the cryptocurrency market. Speaking at the 36th Annual Graham and Dodd Luncheon in New York, he characterized digital assets as fundamentally bogus and predicted their eventual disappearance.
The investor argued that for a currency to function as a store of wealth or a settlement tool, it requires an enforcement mechanism. He stated that projects initiated by individuals lack this capability. Furthermore, Li Lu suggested that society would benefit from a total ban on cryptocurrencies, noting that they facilitate illicit activities.
Li Lu’s stance aligns with the historical skepticism toward Bitcoin held by Warren Buffett and the late Charlie Munger. While Berkshire Hathaway maintains its critical position, the broader financial sector remains divided. For instance, VanEck’s Matthew Sigel has previously argued that critics consistently underestimate the asset class.
Despite the criticism from prominent value investors, the market has seen significant institutional adoption. Since 2024, spot Bitcoin exchange-traded funds have attracted billions of dollars in inflows, highlighting the ongoing tension between traditional financial perspectives and the growth of digital assets.
